EZZ Steel sets buyback price for delisted shares at EGP 138.15
According to the disclosure, the price has been established at EGP 138.15 per share, based on the fair value determined by independent financial adviser BDO.
The buyback price represents a 28 percent premium over the average share price Ezz Steel announced three months before the announcement of the intention to delist.
In addition, the price is 40 percent higher than the average price over the six months preceding the announcement.
In December, the company indicated that the price would be based on either the highest closing price from the previous month (EGP 118.98 per share), the average closing price over the past three months (EGP 108.19 per share), or the fair value assessed by an independent adviser.
Wednesday's announcement follows the board's approval of the company's voluntary delisting and their decision to take necessary steps to convene an Extraordinary General Assembly (EGA) meeting. This came against the backdrop of the meeting the board of directors of Al Ezz Dekheila Steel Alexandria, a subsidiary of EZZ Steel, held in July; during which it approved its voluntary delisting from the EGX without announcing further details.
In November, a significant fault in a blast furnace at EZZ Steel's Ain Sokhna plant disrupted production, causing the company's stock to fall by 9.33 percent on the Egyptian Exchange.
The company's market loss amounted to EGP 5.8 billion ($117.9 million), with the stock closing at EGP 104.7 ($2.11).
The disruption, expected to last for nine months, will reduce annual production by 1.6 million tons, potentially leading to lower sales of flat steel products and decreased foreign currency revenues.
In August, EZZ Steel came under examination when the European Trade Commission launched an anti-dumping investigation into its hot-rolled flat steel exports. This inquiry was prompted by a complaint from the European Steel Association (EUROFER), which alleged that EZZ Steel had been selling its products at unfairly low prices within the EU market.
EZZ Steel, one of Egypt's fastest-growing steel producers, is known for its technological advancements. The company's factories have an annual production capacity of 7 million tons of long and flat steel products, with total investments amounting to $5.9 billion. EZZ Steel employs over 8,000 workers.