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Wednesday, 12 February 2020

Vodafone taps UK-based Linklaters as legal counsel in STC acquisition

M&A WATCH- Vodafone taps UK-based Linklaters as legal counsel in STC acquisition: Vodafone Group has appointed law firm Linklaters to act as legal counsel in its planned sale of a major stake in Vodafone Egypt to Saudi Telecom Company (STC), the local press reports, citing anonymous sources. Vodafone Egypt has already appointed law firm Zaki Hashem & Partners to act as local legal counsel.

Financial advisors: Vodafone Group tapped Goldman Sachs earlier this week to advise on the transaction, which would see STC acquire its entire 55% stake in the Egypt arm. Goldman will likely bring PricewaterhouseCoopers’ Egypt office on board to act as a local financial advisor, the sources said yesterday.

Background: According to a non-binding acquisition agreement signed between STC and Vodafone Group, the former is moving ahead with due diligence to acquire the 55% stake in a USD 2.39 bn all-cash transaction. STC is required to submit a mandatory tender offer for the remaining 45%, which is almost entirely held by state-owned Telecom Egypt, and could end up acquiring 100% of the company and directly control over 40% of Egypt’s telecoms market.

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