ArabFinance: El Ezz Dekheila Steel – Alexandria (EZDK) (IRAX) is getting ready to acquire the stake owned by businessman Ahmed Hamdy Abou Hashima in Egyptian Steel Group in a transaction valued at EGP 2.5 billion, informed sources told Al Borsa Newspaper.

The transaction will be fully financed in cash by EZDK, the sources revealed.

The agreed-upon value of the acquisition transaction amounts to EGP 2.5 billion, instead of the fair value (FV) of the Egyptian Steel Group estimated at EGP 2.7 billion.

As per the consolidated financial statements for the period ended September 2021, EZDK has a cash balance of EGP 3.3 billion.

Moreover, the sources pointed out that 50% of the value of the transaction will be paid once the acquisition is being implemented, with the remaining amount to be settled over two annual installments at a rate of 25% per annum.

The ownership transfer process will be carried out within the few coming weeks, under which Abou Hashima will fully exit the Egyptian Steel Group, the sources remarked.

This transaction comes in line with the expectations of higher demand for rebar during the next period, they said.

EZDK has appointed Eagle Advisors Financial and Consulting Services to set the FV of Egyptian Steel Group, which set Abou Hashima’s 18% stake in the group at EGP 2.7 billion, equivalent to EGP 1,335 per share.

On Sunday, the board of directors of EZDK approved the FV study conducted by the independent financial advisor (IFA) on the Egyptian Steel Group’s stock, in order to purchase Abou Hashima’s 18% stake in Egyptian Steel Group at a total value of EGP 2.5 billion.

El Ezz Dekheila Steel is an Egypt-based 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, Steel Company for Industry, and Trade and Contracting Company, which is focused on the manufacture and trade in all types of metal and metal products.