Ezz Steel to sell 88.9mln shares in Al Ezz Rolling Mills in stock-swap deal

Cairo – Mubasher: The board of directors of Ezz Steel approved the sale of its 88.92 million shares in Al Ezz Rolling Mills (ERM) in exchange for increasing its shares in Al Ezz Dekheila Steel – Alexandria.

For share swap ratio, every 51 shares of ERM will be exchanged with one share of Al Ezz Dekheila Steel – Alexandria, through using credit balances resulting from the acquisition of Ezz Steel’s shares in ERM by Al Ezz Dekheila Steel – Alexandria, the company said in a statement to the Egyptian Exchange (EGX) on Wednesday.

Previously, Ezz Steel announced that its shares in Al Ezz Flat Steel Co (EFS) have been sold over the counter (OTC) to Al Ezz Dekheila Steel – Alexandria for $356.066 million (EGP 5.74 billion).

On 7 November, Egypt’s Financial Regulatory Authority (FRA) approved publishing the disclosure form of the mandatory tender offer (MTO) submitted by Al Ezz Dekheila Steel – Alexandria to acquire 100% of El Ezz Rolling Mills (ERM), owned by Ezz Steel.

It is noteworthy that during the first half of 2019, Ezz Steel swung to losses of EGP 2.46 billion, versus net profits of EGP 148.5 million in H1-18, including minority shareholders’ rights.