Private equity (transactions)—Egypt—Q&A guide

The following Financial Services practice note provides comprehensive and up to date legal information covering:

  • Private equity (transactions)—Egypt—Q&A guide
  • 1. What different types of private equity transactions occur in your jurisdiction? What structures are commonly used in private equity investments and acquisitions?
  • 2. What are the implications of corporate governance rules for private equity transactions? Are there any advantages to going private in leveraged buyout or similar transactions? What are the effects of corporate governance rules on companies that, following a private equity transaction, remain or later become public companies?
  • 3. What are some of the issues facing boards of directors of public companies considering entering into a going-private or other private equity transaction? What procedural safeguards, if any, may boards of directors of public companies use when considering such a transaction? What is the role of a special committee in such a transaction where senior management, members of the board or significant shareholders are participating or have an interest in the transaction?
  • 4. Are there heightened disclosure issues in connection with going-private transactions or other private equity transactions?
  • 5. What are the timing considerations for negotiating and completing a going-private or other private equity transaction?
  • 6. What rights do shareholders of a target have to dissent or object to a going-private transaction? How do acquirers address the risks associated with shareholder dissent?
  • 7. What notable purchase agreement provisions are specific to private equity transactions?
  • 8. How can management of the target company participate in a going-private transaction? What are the principal executive compensation issues? Are there timing considerations for when a private equity acquirer should discuss management participation following the completion of a going-private transaction?
  • 9. What are some of the basic tax issues involved in private equity transactions? Give details regarding the tax status of a target, deductibility of interest based on the form of financing and tax issues related to executive compensation. Can share acquisitions be classified as asset acquisitions for tax purposes?
  • More...

Private equity (transactions)—Egypt—Q&A guide

This Practice Note contains a jurisdiction-specific Q&A guide to private equity (transactions) in Egypt published as part of the Lexology Getting the Deal Through series by Law Business Research (published: December 2020).

Authors: Thebes Consultancy—Aya Sabry; Nora Harb

1. What different types of private equity transactions occur in your jurisdiction? What structures are commonly used in private equity investments and acquisitions?

Egypt's status as a target for private equity (PE) can be traced back to 2001, when the country was included in the MSCI Emerging Markets Index. This was followed by rapid PE growth in the Egyptian economy, particularly between 2005 and 2009, with Egypt being the primary destination for PE investments in the Middle East and North Africa region, attracting an estimated US$2.5 billion in that period. However, following the uprisings and political changes during the period from 2011 to 2013, the PE market in Egypt temporarily slumped before witnessing a gradual progress and strengthening owing to recent legal, regulatory and economic reforms.

At the moment, few onshore PE funds operate in Egypt, and these are often atypical in their structures and funding models, as noted by the Egyptian Private Equity Association. As such, the main players in the PE market in Egypt are not only family offices and investment holding companies, but also angel investors, venture capitalists and investors from small and medium-sized

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