Matouk Bassiouny & Hennawy for legal consultations has provided its services for several merger and acquisition deals in a number of investment sectors during the current year, after consulting on about 20 deals last year, with a total value of about $7bn in various sectors, led by the industrial sector, logistics, financial technology, telecommunications, and banking, in addition to non-banking financial activities.
Omar Bassiouny, the founding partner and head of the corporate sector, mergers and acquisitions at the office, said that the office is working on a large number of deals this year, and it is expected that the number of them will exceed the deals that were implemented during the past year.
Bassiouny added, in an interview with Daily News Egypt, that the office consulted on more than 5 merger and acquisition deals in the health sector, including two exit deals, and three minority stake sale deals, in addition to two merger and acquisition deals in the banking sector, one for a government bank, and the other private sector bank.
He explained that the education sector has become very active and attracted large investments during the last period, and the office is already managing four deals in the university education sector for foreign universities, 3 deals in the school sector, and three deals in the financial technology sector, which is also witnessing rapid growth during the last period, including two deals to sell minority stakes, and a full takeover deal, in addition to a number of deals in the energy sector, including one deal in the renewable energy sector.
Among the deals carried out by the office during the past year is his work as an advisor to an Emirati sovereign fund, on stakes in five companies listed on the Egyptian Exchange for about $1.8bn, in addition to providing advice to the Saudi Public Investment Authority (PIF) in its acquisition of minority stakes owned by the Egyptian government in four strategic companies with a value of $1.3bn; Abu Qir Fertilizers and Chemical Industries Company, Misr Fertilizer Production Company, Alexandria Container and Cargo Handling Company, and e-finance.
The office provided legal advice to the Emirati company, Chimera Investments, in its acquisition of Beltone Financial Holding, at a value of about EGP 385m, as well as advice provided to an Emirati food company, in its acquisition of 60% of the Abu Auf Snack Foods company, as well as the Izdehar Fund’s exit deal from Global Corp. for Financial Services, STC’s acquisition of Giza Systems, in addition to advising Coca-Cola Hellenic to raise its shareholding in its Egyptian unit, Coca-Cola Egypt.
The office also provided advice to Dpi in the acquisition of 34% of the “B-Tech” company specialized in the retail trade and distribution of home and electronic appliances, at a value of up to $150m.
Bassiouny revealed a plan to open a new office in the Kingdom of Saudi Arabia, specifically in the capital, “Riyadh,” next September, to be followed by an office in Jeddah, to be added to the office’s branches in Egypt, Sudan, Algeria, Abu Dhabi, Dubai, and Libya.
He mentioned that the office is working on 3 propositions, one of which is a governmental proposition for a company in the technology sector, and two propositions for the private sector in the housing and education sectors, stressing that the implementation of these propositions could take place during the next year until the conditions of the Egyptian Exchange improve.
He said that offerings at the present time could affect the evaluation of companies, and this is not the case in the local market only, but extends to global markets, especially since the activity of offerings in most global markets is suspended, and that the only markets that are witnessing a boom in the process of offerings are the Abu Dhabi and Dubai markets.
He pointed out that the state’s approach to completing the government’s propositions program is a positive step to get out of the current economic crisis, and supporting the private sector at that important stage is an inevitable step on the road to reform.
He emphasized that the state should facilitate all procedures for foreign investors in particular by setting objective and clear criteria for accepting or rejecting investments, in addition to accelerating operations.
He added that the most important thing the state needs at that stage is speed and readiness, regardless of the theory of sectors, because the obstacle to the offerings is that it takes a long time to prepare the companies subject to the offering.
It is likely that the option of offering shares to strategic investors is the alternative and quick solution at the present time.
The government intends to offer 32 companies distributed in 18 sectors until March 2024 through offering them on the stock exchange or selling shares to strategic investors, or both.
Investment banks will determine the best option for the offering, which will include Banque du Caire, The United Bank, and the government’s stake in the Arab African International Bank, according to previous statements by Mostafa Madbouly.
From the current offering plan, the government aims to exit from seven sectors, including the pharmaceutical industries, chemical industries, and construction, and reduce its investments in 7 sectors, including power plants, and provide an opportunity for the private sector to invest in 4 sectors, according to Cabinet data.
