Al Ezz Dekheila Steel Alexandria has submitted a voluntary delisting request to the Egyptian Exchange (EGX), according to sources. The EGX listing committee will study the request and set a date for implementing it.
The biggest steel manufacturer in Egypt obtained about $250m syndicated loan from several Emirati banks, including Emirates NBD Bank, to finance the purchase of shares from shareholders unwilling to remain with the company after the delisting from the stock market.
The sources said that the company will transfer its foreign currency loan to the Central Bank of Egypt, and receive its equivalent value in local currency to finance the deal. Al Ezz Dekheila said that the purchasing of its shares will be financed partially from the company’s own resources.
The voluntary delisting, which was announced on 11 July, was approved by the company’s extraordinary general assembly on 5 August.
The stock purchase from shareholders who opt out of holding their shares would cost up to EGP 8.8bn.
Several government agencies, including the National Investment Bank (NIB), the National Bank of Egypt (NBE), Banque Misr, EGPC, Misr Insurance Company, and others, own shares in the company, which amount to about 32.9% in total.
Ezz Steel has about 64% of the shares of Al-Ezz Dekheila Steel Company, and about 3% is owned by small investors.
Minister of Planning and Economic Development Hala El-Said said that the government will sell its shares in the company for $241m, of which 60% is in dollars, and 40% in Egyptian pounds.
The board of directors of Al-Ezz Dekheila Steel agreed to voluntarily delist the company’s shares from the stock exchange, and purchase the shares from those unwilling to remain with the company after the delisting at a price of EGP 1,250 per share.
