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Sunday, 20 September 2020

US-based oilfield service provider NESR acquires Egypt’s SAPESCO for USD 21 mn

M&A WATCH- Texas-based National Energy Services enters Egyptian market with USD 21 mn purchase of Egypt’s SAPESCO: US-based MENA and Asia Pacific oilfield service provider National Energy Services Reunited (NESR) closed last week its USD 21 mn acquisition of Egypt’s Sahara Petroleum Services Company (SAPESCO), according to a press release (pdf) from Matouk Bassiouny & Hennawy, which advised NESR. The acquisition agreement, which was finalized in June, also saw SAPESCO receive an issuance of over 2 mn NESR shares based on a USD 10 per share conversion rate as well as a final earnout of up to USD 3 mn in cash. NESR agreed to settle or assume SAPESCO's long-term debt. The acquisition marks NESR’s entry into the Egyptian market, and brings SAPESCO's existing upstream services contracts in Saudi Arabia, the UAE, Libya, and Kuwait into its portfolio.

Advisors: Matouk Bassiouny & Hennawy and Freshfields Bruckhaus Deringer acted as legal counsel to NESR. PricewaterhouseCoopers (PwC) served as financial advisors to NESR while AMR & Partners Law Firm were legal advisors to SAPESCO.

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