Last Update 21:59
Tuesday, 19 November 2019

Egypt's Ezz Steel to raise stake in flat-steel unit

Reuters , Sunday 19 Apr 2015
Share/Bookmark
Views: 1310
Share/Bookmark
Views: 1310

Egypt's biggest steelmaker Ezz Steel said on Sunday it was increasing its stake in its flat-steel subsidiary by converting $255 million of loans into equity.

The move to increase capital at Al Ezz Flat Steel coincided with an announcement by Egypt's trade ministry on Sunday that it would impose an eight percent import tariff on steel rebar - reinforced steel bars - for three years to protect the domestic industry.

Ezz Steel will raise its holding in the unit to 73 percent from about 64 percent currently, head of investment relations Kamel Galal said.

"No cash will exit Ezz Steel. The capital increase will be through a debt write-off," Galal told Reuters.

Ezz Steel said in a bourse statement earlier in the day that 15 million shares would be issued in the unlisted subsidiary at a value of $17 a share.

Galal said Ezz Steel had extended the loans to its subsidiary in the past three to four years to add steel rebar to its production capacity.

Shares in Ezz Steel were down 4.89 percent at 12.25 Egyptian pounds by market close.

The company swung to a net loss of 461 million Egyptian pounds ($60.46 million) for the nine months to Sept. 30 from a net profit of 218 million pounds a year earlier. 

Short link:

 

Email
 
Name
 
Comment's
Title
 
Comment
Ahram Online welcomes readers' comments on all issues covered by the site, along with any criticisms and/or corrections. Readers are asked to limit their feedback to a maximum of 1000 characters (roughly 200 words). All comments/criticisms will, however, be subject to the following code
  • We will not publish comments which contain rude or abusive language, libelous statements, slander and personal attacks against any person/s.
  • We will not publish comments which contain racist remarks or any kind of racial or religious incitement against any group of people, in Egypt or outside it.
  • We welcome criticism of our reports and articles but we will not publish personal attacks, slander or fabrications directed against our reporters and contributing writers.
  • We reserve the right to correct, when at all possible, obvious errors in spelling and grammar. However, due to time and staffing constraints such corrections will not be made across the board or on a regular basis.
Latest

© 2010 Ahram Online.