London, 7 February 2006 – LAWFUEL – The Law News Network – Baker & McKenzie announced today that Telecom Egypt’s USD 891 million international equity offering, has won Telecom IPO of the Year, awarded by Telecom Finance. The Offering was the largest IPO to date in the Middle East and North Africa. Baker & McKenzie advised both the Issuer and the Selling Shareholder on the deal, which completed in December 2005.
The IPO used a rare volume-weighted average pricing method, being divided into both retail and international tranches. It was the international tranche that was disposed of using the innovative method, which is designed to spread shares more evenly. The transaction highlights the trend of rejuvinated interest in Middle Eastern equities, particularly Egypt, which is now one of the leading investment areas in the region targeted by overseas investors.
“That the Telecom Egypt IPO has won this award is a reflection of the size and complexity of the transaction, and is a real compliment to all involved. The award is also a recognition of the growing demand for telecom stocks from emerging markets” commented Partner, Peter Magyar.
This follows the Firm’s recent involvement in another large telecoms deal from an emerging market, when it advised the Turkish Government on the privatisation of Turk Telecom by way of a USD 6.55 billion sale of a 55% interest in the organisation; that deal was awarded the Emerging Markets Deal of the Year by Acquisition Monthly in January.
The Baker & McKenzie team advising on the Telecom Egypt IPO in London was led by corporate partner Peter Magyar and senior capital markets associate Federico Salinas, assisted by associate Kathryn Bennett. Partner Tom Philipp oversaw US aspects of the transaction. Partners Hazim Rizkana and Suzan Farid led the Egypt team.
Credit Suisse First Boston along with EFG Hermes were lead managers for the Offering of Telecom Egypt.