Ezz Steel to Buy Back Shares and Delist from EGX and LSE

Published 29/01/2025, 09:10
Ezz Steel to Buy Back Shares and Delist from EGX and LSE

CAIRO - Ezz Steel Company S.A.E. (EGX: ESRS, LSE: AEZD), an Egyptian steel manufacturer, has announced a shareholder-approved voluntary delisting from the Egyptian Stock Exchange (EGX) and London Stock Exchange (LON:LSEG) (LSE). The company also plans a share buyback offer for up to 171,905,362 shares, including shares represented by Global Depositary Receipts (GDRs).

The extraordinary general assembly meeting of shareholders, held on Monday, passed the resolutions for the voluntary share delisting and the share buyback offer. The buyback is expected to commence on or around March 2, 2025, and conclude around March 6, 2025. Payment for accepted shares is to be made in cash, without interest, within approximately two Egyptian business days following the expiration date.

GDR holders cannot directly sell their GDRs in the buyback offer but may participate by withdrawing the underlying shares from the depositary and then offering those shares for sale. The board has conditionally approved the voluntary delisting of GDRs from the LSE, a move not requiring EGM approval. This decision follows low trading volumes of GDRs on the LSE and aims to reduce regulatory and administrative burdens.

Following the share buyback, purchased shares will be held in treasury until a capital reduction is approved by an EGM, expected to occur between three months to one year after the buyback. Post-buyback, the company aims to effect the voluntary delistings of both shares and GDRs. The company does not intend to list the shares or GDRs on any other exchange post-delistings.

The voluntary GDR delisting is contingent upon an amendment to the Deposit Agreement and GDR Terms and Conditions becoming effective on March 10, 2025, and the subsequent 20 business days’ notice period to the FCA and LSE. The expected date for the GDR delisting is on or after April 9, 2025.

Ezz Steel emphasizes that the board has approved the share buyback offer, believing it serves the company’s and shareholders’ best interests. However, they are not recommending whether shareholders should participate in the buyback offer. Shareholders are advised to consult their investment and tax advisors to make an informed decision.

This announcement, based on a press release statement, contains forward-looking statements, which involve risks and uncertainties. The company disclaims any obligation to update these statements following the publication of this announcement. The information is for background purposes only and is not intended to be complete or relied upon for any investment decisions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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