CAIRO - Ezz Steel Company S.A.E. has announced its intention to voluntarily delist from the Egyptian Stock Exchange (EGX), as confirmed by a disclosure report following a Board of Directors meeting held on December 7, 2024. The company plans to proceed with the delisting in accordance with Article (55) of the EGX Listing & Delisting Rules.
The rationale behind the decision includes mitigating risks associated with industry fluctuations, protecting against negative impacts on share price, and reducing pressure on shareholders amidst global steel production surpluses and local market competition from imported steel products.
For shareholders objecting to the delisting or unwilling to remain post-delisting, Ezz Steel has committed to purchasing their shares at the highest of several determined values, with a ceiling buyback price set at EGP 120.00 per share. The fair value of shares will be assessed by BDO Keys Financial Consulting S.A.E., an Independent (LON:IOG) Financial Advisor (IFA) registered with the Financial Regulatory Authority (FRA).
The Board has also outlined a proposed timetable for the delisting process, which should not exceed four months from the Board's decision and three months from the EGM decision on the matter. If the company fails to execute the delisting within this period, the EGX Listing Committee may consider compulsory delisting.
Funding for the share purchases will come from a combination of long-term external financing, capped at $300 million, and the company's own resources. These funds will be channeled through a "voluntary delisting shares account" created specifically for this purpose.
Post-delisting, shareholders choosing to retain their shares will trade them over-the-counter (OTC) on the EGX. Ezz Steel will continue to issue audited annual statements but will not be obligated to release quarterly financial statements.
This move is expected to be accommodated by the company's financial position, with the immediate accounting treatment of treasury shares applied to the delisted shares. The impact on shareholders and the company's financial position has been disclosed in accordance with regulatory requirements.
The information is based on a press release statement from Ezz Steel Company S.A.E.
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