Ezz Steel's voluntary delisting from EGX gets FRA approval

Cairo – December 16, 2024: Ezz Steel’s Chairman and Managing Director, Hassan Nouh, revealed that the company has received the Financial Regulatory Authority’s (FRA) approval to delist from the Egyptian Exchange (EGX).

In an EGX disclosure, Nouh explained that while the FRA has no objections to the delisting, it has outlined a series of conditions that Ezz Steel must adhere to.

The approval follows Ezz Steel's submission of a formal request, accompanied by a disclosure report approved by the company’s Board of Directors on December 7, 2024, and submitted to the FRA on December 8, 2024.

These conditions, which must be met before the company calls an Extraordinary General Assembly (EGA) to vote on the delisting, include several procedural steps.

Before the EGA can be convened, Ezz Steel must publish the executive summary of the independent financial advisor's report, which includes the fair value of the company's shares for the purpose of voluntary delisting.

This summary, along with the accompanying documents, must be made available on the EGX trading screens at least 15 days before the EGA meeting, and be accessible at the company's headquarters for shareholder review during this period.

Voting at the EGA will be restricted to minority shareholders holding free-floating shares, excluding the principal shareholder and related parties. For the delisting to be approved, at least 75 percent of the votes from eligible minority shareholders must be in favor of the move.

The company's voting rules also ensure that dissenting shareholders holding up to 10 percent of the company’s shares retain their voting rights, regardless of their objections.

Ezz Steel must also ensure that all procedures for delisting, as outlined in EGX regulations, are completed.

After the EGA approves the voluntary delisting, the shareholder requesting the delisting must seek an exemption from submitting a mandatory tender offer (MTO).

The company intends to finance its delisting through external financing with a maximum limit of $300 million.