CAIRO: The Egyptian Holding Company for Metallurgical Industries has extended the period for accepting proposals on its 83.1 percent stake in the Arab Company for Special Steel (ARCOSTEEL) after the recent government decision to impose taxes on steel exports.
A senior official at the holding company told reporters on Thursday that investors voiced intentions that they would revise their feasibility assessment of the company’s assets in light of the recently imposed export taxes. “The holding company has, therefore, extended the period for accepting proposals to March 16 instead of February 28, he said.
The official, who requested anonymity, added that about sixteen bidders informed the Holding Company for Metallurgical Industries that fundamental changes should be introduced on the deal terms, following the decision of the Ministry of Trade and Industry that imposed taxes on steel exports on February 25, 2007. The export tax amounted to LE 160 per ton.
“Bidders voiced concerns that the export tax could cut down the company’s cash flows and urged the holding company for a revision of due diligence assessment of the company, the official asserted.
Meanwhile, officials from the Ministry of Investment denied that they have been informed with any negative reactions on the steel and cement investment market after the introduction of export taxes.
