The Egyptian Exchange (EGX) has approved the voluntary delisting of Al-Ezz Dekheila Steel Company (EZDK), which will start on Tuesday, 12 September, and last for five working days until 25 September. The delisting was approved by the company’s extraordinary general assembly on 5 August.
The government has decided to exit EZDK, one of the largest steel producers in Egypt, and sell its 32.9% stake to the private sector. The move is part of the government’s plan to divest from some public enterprises and attract more investments.
According to sources, Ezz Steel Group, which owns about 64% of EZDK, will not buy any shares from the government but will buy its shares in a process similar to purchasing treasury shares. The remaining 3% of EZDK is owned by small investors.
Hala El-Said, Minister of Planning and Economic Development, said that the government will sell its shares in EZDK for up to $241m, 60% of which is in dollars and 40% in Egyptian pounds. She added that the proceeds will be used to finance development projects and reduce public debt.
EZDK reported a net profit of EGP 1.4bn in the first half of this year, compared to a net loss of EGP 1.2bn in the same period last year. The company’s sales increased by 77% to EGP 22.8bn in the first six months of this year.