Ezz Steel founder increases his majority stake by 27%

Businessman Ahmed Ezz has increased his majority stake in Ezz Steel after purchasing an additional 27% of the mega company.

Ezz Steel has completed an EGP 836m transaction after selling its 27% stake in what can be termed corporate restructuring.

A 27% stake was owned by four subsidiaries of Ezz Holding Group Industry and Investment, and ownership was transferred directly to Ahmed Ezz, Ezz Steal's main shareholder and founder. EFG Hermes acted as operations broker.

Sources added that Ezz Holding indirectly owns approximately 38% of Ezz Steel, in addition to a 27% stake. They pointed out that the purpose of the agreement was to simplify the ownership structure between shareholders.

Egypt Exchange (EGX) management had announced that a deal worth EGP 836.4 million would be implemented for 148.299 million shares of Ezz Steel.

The company posted a loss of approximately EGP 4.32 billion in the January-September 2019 period, compared to a net loss of EGP 326 million in the same period 2018. The losses take into account the minority rights of the shareholders.

The company's revenues increased in EGP 35.26 billion in the first nine months of 2019, compared to total sales of EGP 37.44 billion last year.