Al Ezz Gds Regs Regulatory News (AEZD)

31 Jul 2008 10:59



ezzsteel Rights Issue

31 July 2008, Cairo, Egypt - Al Ezz Steel Rebars Co ('ezzsteel / the Company'), the largest producer of finished steel products in the Middle East and North Africa, announces that following the review of the integration improvement policy and expansion plans to be implemented in Egypt and Algeria, the Board of Directors yesterday unanimously adopted the following resolutions:

1. Approving a capital increase of EGP 1,823,881,940 by issuing 364,776,388 new shares at par value (five Egyptian Pounds per share) to be fully paid-up. 

2. Offering each existing share the right to subscribe to two new shares. 

3. The Board has authorized the Chairman and Managing Director to set the date of subscription which will start 15 days after the date of publishing the approved resolution in the Egyptian newspapers. The subscription period will last for one month. In the event that not all rights are subscribed to, the capital increase shall only represent the subscribed shares. ezzsteel is currently in process of obtaining approvals from competent authorities. 

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About ezzsteel 

ezzsteel is the largest independent steel producer in the Middle East and North Africa, with a total actual capacity of 5.3 million tonnes of finished steel per annum in 2007. It is the Egyptian market leader with over 65 per cent market share in terms of sales. 

In 2007, the Company produced 3.1 million tonnes of long products (typically used in construction) and 1.7 million tonnes of flat products (typically used in consumer / industrial goods). ezzsteel's customer base is geographically diversified, with flat products mainly directed to export markets, whereas long products are sold in the domestic market. More than 70 per cent of its plants are less than 10 years old using the latest in modern steel making technology.