Ezz Steel, Egypt's largest steel producer, has been accelerating the process since the day it announced its decision to exit the stock market. The company shared the valuation report prepared by its financial advisor BDO Keys for Financial Consultancy, which set the share buyback price at EGP 138.15. This price is slightly higher than the previously announced buyback price of EGP 120.
In December last year, Ezz Steel announced its decision to voluntarily delist from the Egyptian Exchange (EGX), a decision taken by the company's board of directors. The move aims to protect the company from market pressures that risk negatively impacting its business and shareholders. The reasons behind the voluntary delisting include protection measures in Europe and other export markets, excessive steel production, especially from China, and competitive pressure in the local market due to increased imported steel products.
Ezz Steel aims to complete the voluntary delisting process within four months after the board of directors' decision. If the company, which plans to complete this process within three months from the Extraordinary General Assembly meeting to be held on 18 January 2025, exceeds the specified period, the Egyptian Stock Exchange's Listing Committee will consider the situation and may decide to compulsorily delist. In this case, the company will be required to repurchase affected shareholders.
Ezz Steel is the leader of the Egyptian steel industry, with a production capacity of 7 million tonnes of long and flat steel products per year. The company operates from modern facilities in Sadat City, Alexandria, Suez and 10th Ramadan City.
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