Ezz Steel Company’s board of directors has decided to buy shares from shareholders objecting to its voluntary delisting or unwilling to continue holding shares, offering EGP 138.15 (USD 2.73) per share, according to a disclosure.
This price also applies to shares tied to certificates of deposit (CDs) listed on the London Stock Exchange.
The valuation was based on a report by independent financial advisor BDO Egypt. The delisting price reflects a 28pct premium over the average share price for the three months before the delisting announcement and a 40pct premium over the six-month average prior to the announcement.
To finance the delisting, the company has secured a loan from Emirates NBD, according to local media reports.
Ezz Steel operates four fully integrated steelmaking plants in Egypt with a combined production capacity of 7 mln tons of flat and long steel products annually.
1 USD / 50.5 EGP