Egypt Daily News – Businessman Ahmed Ezz has purchased 156.5 million shares in Ezz Steel for a total value of 21.6 billion EGP as part of the buyout deal for shareholders opposing the company’s delisting from the Egyptian Stock Exchange.
For the first time in a delisting process, the purchase of dissenting shareholders’ shares was executed just a week after they offered them for sale. Shareholders unwilling to remain invested in Ezz Steel following its voluntary delisting offered 156.5 million shares for sale between Sunday, February 22, and the end of trading on Thursday of the same week. Ahmed Ezz bought all the shares on offer and transferred their value to shareholders’ accounts.
Ahmed Ezz is set to complete the purchase of the remaining shares in Ezz Steel, with payment due by the end of the trading session on Thursday, March 6. The transaction will be carried out through sell orders registered in the (OPR) market on the stock exchange.
Ezz is financing the share buyout through a $300 million loan, in addition to cash reserves, to cover the acquisition of shares from shareholders affected by the delisting. If some shareholders choose to retain their shares, trading will continue through the off-exchange market.
Ezz Steel: A Market Giant
Ezz Steel is among the top 20 companies listed on the Egyptian Stock Exchange in terms of market value, which is close to 60 billion EGP. It is also the second-largest company in the basic resources sector by market weight. The company has a production capacity of approximately 7 million tons of rebar and flat steel. Its issued and paid-up capital stands at 2.7 billion EGP, distributed over 542.3 million shares, with a nominal value of 5 EGP per share.
Ahmed Ezz personally and through Global Depository Receipts (GDRs) owns 66.56% of the company, while related parties hold 1.8%, and other shareholders control 31.69% of the shares
