Ezz Steel voluntarily delists from Egyptian Exchange - Markets & Companies

Al-Ahram Weekly

30-01-2025

Egyptian giant Ezz Steel has secured shareholder approval for its voluntary delisting from the Egyptian Exchange (EGX), according to a disclosure published on Wednesday.
The Extraordinary General Assembly (EGA) approved the company's delisting plan, setting a buyback price of EGP 138.15 per share for shareholders opposing the move. This price is based on the fair value determined by independent financial adviser BDO.
This valuation represents a 28 percent premium over the company's average share price during the three months before the delisting announcement.
It also marks a 40 percent increase compared to the average price during the past six months.
In December 2024, Ezz Steel stated that the buyback price would be based on the highest closing price from the previous month (EGP 118.98 per share), the three-month average closing price (EGP 108.19 per share), or the fair value determined by an independent financial adviser.
Moreover, the EGA approved the establishment of a temporary account under the name 'Voluntary Delisting Shares Account' to facilitate share buybacks from affected shareholders.
The company will fund this account, or third-party guarantees will back it per Article 55 of the EGX listing and delisting regulations.
Additionally, the assembly authorized the board chairman and managing director, or their designated representative, to complete all necessary procedures for delisting from the EGX and the London Stock Exchange.
This includes repurchasing shares from shareholders, pledged creditors, and other stakeholders and representing the company before the Financial Regulatory Authority, the General Authority for Investment and Free Zones, and other relevant entities.
The decision followed a similar move by Al Ezz Dekheila Steel Alexandria, a subsidiary of Ezz Steel, which approved its own voluntary delisting in July without providing further details.
Ezz Steel has faced recent challenges, including a major blast furnace malfunction at its Ain Sokhna plant in November.
The disruption caused a 9.33 percent decline in the company's stock price on the EGX, resulting in a market loss of EGP 5.8 billion ($117.9 million). Shares closed at EGP 104.7 ($2.11).
The production setback, expected to last nine months, could reduce annual output by 1.6 million tons, impacting sales of flat steel products and foreign currency revenues.
In August, Ezz Steel became the subject of an anti-dumping investigation by the European Trade Commission into its hot-rolled flat steel exports.
The probe was initiated after the European Steel Association (EUROFER) filed a complaint accusing the company of selling products at unfairly low prices in the EU market.
Ezz Steel is one of Egypt's leading steel manufacturers. Its factories produce seven million tons of long and flat steel annually.
The company has total investments of $5.9 billion and employs over 8,000 workers.
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