The board of directors of Al Ezz Dekheila Steel Company, one of the Ezz Steel companies, announced on Sunday its approval to purchase Egyptian businessman Ahmed Abu Hashima’s 18 percent stake in the Egyptian Steel Company, with a total value of EGP 2.5 billion.
The stake represents the ownership rights in the Egyptian Steel Company, which includes the management of the steel plant projects from Ahmed Abu Hashima, the founding partner and the Abu Hashima Company for managing steel projects, according to Al Ezz Dekheila’s disclosure sent to the Egyptian Stock Exchange (EGX).
With the this transfer, Al Ezz Dekheila will be having the lion share of the iron and steel market with a total market share of about 76 percent, as the company acquires 53 percent of the market, while Egyptian Iron and Steel Company accounts for 23 percent of the market.
In May, the owner of Al Ezz Dekheila Ahmed Ezz raised his stake in Ezz Steel to 32.2 percent, up from 27.3 percent through purchasing about 9 million global depositary receipts (equivalent to 27.11 million local shares) owned by Al Ezz Holding Group Industry and Investment, according to the EGX data.
The value of the transaction amounts to $80.9 million, with a price of $2.1 per share.
In October, the market value of his Ezz’s stake in Ezz Steel went up by EGP 1.1 billion (about $71 million) as a result of the heavy demand on the company’s shares in the EGX.
Ezz Steel is the largest independent steel producer in the Middle East and North Africa, with a steel production capacity amounts to 7 million tonnes annually.
Egyptian Steel was established in September 2012.
According to its profile on the EGX, Al Ezz Dekheila Steel Company is Egypt-based and engaged in the manufacture and production of steel in different types and forms.
The Company’s direct subsidiaries include Al Ezz Steel Sheet Manufacturing Company SAE, which focuses on the production of coil and rolled flat steel strips, and Steel Company for Industry, Trade and Contracting Company (Contrasteel) SAE, which is specialized in the manufacture and trade in all types of metal and metal products.
Moreover, the company holds shares, indirectly, in Egypt Company for the Manufacture of Pipes Supplies and Casting SAE, which is engaged in manufacturing pipe supplies, construction supplies, and mechanical equipment.
The Company is 55 percent-owned by Al Ezz Steel Rebars.
