Zulficar & Partners Law Firm (Z&P) has acted as the legal advisor to the Ministry of Finance of Egypt on the successful offering 10% of Telecom Egypt’s share, advised by ADSERO – Ragy Soliman & Partners, in the secondary market, marking another milestone in the government’s ongoing program to divest its stakes in public sector companies. The offering was divided into two tranches, with 9.5% allocated to qualified investors and 0.5% allocated to employees of the Company.
The offering to qualified investors was conducted through accelerated book building and closed at a price of EGP 23.11 per share, resulting in a total transaction value of approximately EGP 3.75 billion (approx. USD 121.6 million). The Ministry of Finance announced that the offering received overwhelming demand, with subscriptions exceeding triple the number of available shares.
Although the ministry’s statement did not provide specific details on the allocation between local and non-Egyptian buyers, the offering is expected to attract significant interest from both domestic and international investors.
This divestment initiative is part of the government’s broader strategy to attract private capital, stimulate economic growth, and enhance the efficiency of public sector companies. The Financial Regulatory Authority (FRA) granted approval for the private placement by approving the Information Memorandum on May 11, 2023. Subsequently, the tranche designated for qualified investors was successfully executed on May 14. The employees’ portion of the offering will be executed at the same price in the coming days.
The Z&P team was headed by Anwar Zeidan (pictured left), founding Partner and head of capital markets group and includes Reem Abu Zahra, senior associate, Amr Meselhy, associate, and Youmna Ahmed Hagar, associate. The transaction has been supported by by Mona Zulficar, the founding partner and chair of executive committee of Z&P.
The Adsero team was led by Ahmed Abdelgawad (pictured right), partner and co-head of M&A and capital markets, and Ibrahim ElMessery, senior associate.
The transaction was led by a consortium consisting of Al Ahly Pharos and CI Capital. Both parties acted as the sell-side financial advisor to MOF.