Ezz Steel, the largest steel producer in the Arab world and Africa, has announced its plans for voluntary delisting from the Egyptian Exchange (EGX). The company will conduct a buyback of shares from dissenting shareholders and global depositary receipts (GDRs) listed on the London Stock Exchange, offering a premium of up to 7% over the last closing price of EGP 112.
Share Buyback Details
Ezz Steel has set a maximum buyback price of EGP 120 per share, reflecting a market valuation of approximately $1.3 billion. The final buyback price will be based on the highest value among three benchmarks:
- The highest closing price in the past month at EGP 118.98.
- The average closing price over the last three months, which stands at EGP 108.19.
- The fair value assessment by BDO Keys Financial Consulting.
Strategic Rationale
This move aligns with Ezz Steel’s broader strategy to streamline its operations and enhance shareholder value. With a production capacity of 7 million tons annually, the company operates four facilities across Egypt: in Sadat City, 10th of Ramadan City, Suez, and Dekheila, Alexandria.
The delisting decision will be finalized by the board of directors following the evaluation results, ensuring the process adheres to regulatory and shareholder interests.
Industry Impact
Ezz Steel’s delisting is expected to ripple through the Egyptian financial and steel markets. As a key player in the region’s steel industry, the company’s transition away from public listing may influence investor confidence and market dynamics in Egypt’s industrial sectors.