Clyde & Co advises LeBLANC on landmark Saudi share swap transaction – MidEast Law – International law firm Clyde & Co has acted for LeBlanc International PTE Limited (“LeBLANC”) on the sale of its holding of 49% of the share capital of Al Babtain LeBLANC Telecommunications Systems Ltd Company to Al Babtain Power and Telecommunications Company (“Al Babtain”) (a joint stock company listed on Tadawul the Saudi Stock Exchange). In consideration, Al Babtain will issue 2,250,000 shares in favour of LeBLANC and will also pay LeBLANC a cash amount of SAR 25,840,000.

Once the landmark transaction has completed, it will be the first time a foreign shareholder has acquired shares in a public company in Saudi Arabia through a share swap transaction.

LeBLANC is known internationally as a major player in implementing major communications infrastructure solutions and has been a client of Clyde & Co in the region for a number of years.

The Clyde & Co team advising on the deal was led by corporate partner Phil O’Riordan, assisted by associate Saud Alarifi in Dubai, along with corporate partner Abdulaziz Al-Bosaily and associate Faisal Al-Ammaj of Clyde & Co’s associated office in Riyadh.

Completion of the Sale and Purchase Agreement is subject to the satisfaction of a number of conditions precedent. These include the authorization of the Saudi Arabia General Investment Authority to license LeBLANCs participation in Al Babtain, obtaining all regulatory approvals from all competent authorities, including the Ministry of Commerce and Industry and the Capital Market Authority (and obtaining the approval of Al Babtain’s Extraordinary General Assembly on such capital increase).

Al Babtain will also initiate talks with LeBLANC shareholders in order to acquire 100% of the LeBLANC Group of Companies globally, which acquisition would also be carried out against shares in Al Babtain. The consummation of this transaction is subject, among other things, to the execution of definitive agreements, satisfaction of all agreed terms and conditions, satisfactory due diligence, approval of Al Babtain’s Board and Extraordinary General Assembly as well as obtaining all regulatory approvals.

Al Babtain Power and Telecommunications Company was advised by Baker & McKenzie. HSBC Saudi Arabia Limited acted as Al Babtain’s financial advisor.

Clyde & Co has four Middle Eastern offices, which operate as a single unit; Abu Dhabi and Dubai in the UAE; Doha in Qatar; and an associated office in Riyadh in Saudi Arabia. The firm formalised its presence in the Middle East in 1989 after many years of client activity in the region. Today Clyde & Co is recognised by the market as one of the major international law firms in the Middle East.

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