The board of directors of Al-Ezz Dekheila Steel (IRAX), a 55%-owned subsidiary of Ezz Steel (ESRS), agreed to acquire 56% of Ezz Flat Steel (EFS) and 100% of Ezz Rolling Mills (ERM)—two moves that should leave IRAX a full owner of both companies and simplify ESRS’s corporate structure. This takeover will be financed through a capital increase by IRAX of 13mn shares at EGP1,176.85 each (EGP100 par value + EGP1,076.85 capital surplus) or the fair value set by the independent financial advisor (IFA). IRAX’s existing shareholders will be able to subscribe to 12.17mn of the 13mn-share rights issue, proportional to their respective holdings in IRAX
For more details, please read the full report below.