Business tycoon Ahmed Ezz increased his majority stake in Ezz Steel after acquiring additional 27% of the mega company.
Ezz Steel completed a EGP 836m transaction after selling 27% stake in what can be called a corporate restructuring, sources close to the matter told Daily New Egypt.
The 27% stake was owned by four subsidiaries of Ezz Holding Group Industry and Investment, and the ownership was transferred directly to the Ezz Steal main shareholder and founder Ahmed Ezz. EFG Hermes acted as the operation’s broker.
The sources added that Ezz Holding directly owns roughly 38% of Ezz Steel in addition to indirect 27% stake. They pointed out that the deal’s goal is to simplify the ownership structure among the shareholders.
The Egyptian Exchange (EGX) administration had revealed a deal worth EGP 836.4m would be implemented on 148.299m Ezz Steel shares.
The company incurred losses of about EGP 4.32bn during the period from January to September 2019, compared to a net loss of EGP 326m during the same period in 2018. The losses take into account the minority rights of shareholders.
The company’s revenues decreased during the first nine months of 2019 to EGP 35.26bn, compared to total sales of EGP 37.44bn last year.