Egypt’s largest steel producer acquires 18% of Egyptian Steel at $160m

CAIRO: Egypt’s largest steel producer Al Ezz Dekheila purchased 18 per cent of Egyptian Steel Company’s total equity in a deal worth 2.5 billion Egyptian pounds ($160 million), Arab News reported.

The purchase has been made from the founding partner Ahmed Abou Hashima and his company Egyptian Steel, according to an EGX filing.

The fair value of the share has been set at 1,192 Egyptian pounds by the independent financial advisor, Eagle Financial Consulting Company.

The acquisition means that Al Ezz Dekheila will possess a total market share of 76 per cent, consolidating further its control over the iron and steel market in Egypt, according to Alahram.

Ezz Steel returned to profit with a net income of 3.76 billion Egyptian pounds during the first nine months of 2021, compared with a net loss of 4 billion Egyptian pounds last year.

Al Ezz Dekheila, a subsidiary of Ezz Steel, is Egypt’s largest steel manufacturing facility, with a total capacity of 3.2 million tonnes of finished steel products annually.

Last year, Egypt was ranked 20th among the world’s top steel producers, being the only Arab country on the list, according to a report published by the World Steel Association.

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