Al Ezz Gds Regs Regulatory News (AEZD)

2 Feb 2007 07:01

Al EZZ Steel Rebars S.A.E.02 February 2007 Not for release, directly or indirectly, in the United States ofAmerica, Australia, Canada or Japan. The securities referred to herein have notbeen and will not be registered under the US Securities Act of 1933, as amended,and may not be offered or sold in the United States or to US persons unless thesecurities are registered under the Securities Act, or an exemption from theregistration requirements of the Securities Act is available. No public offeringof the securities will be made in the United States. For Immediate Release 2 February 2007 EZZ STEEL LAUNCHES GLOBAL OFFERING Al Ezz Steel Rebars S.A.E. ("Ezz Steel"), the largest independent producer ofsteel in the MENA region and market leader in Egypt, today announces the launchand commencement of investor meetings of the global offering of its ordinaryshares and Global Depositary Receipts ("GDRs"), each GDR representing threeordinary shares. Ezz Steel's ordinary shares are listed on the Cairo andAlexandria Stock Exchanges ("CASE") and its GDRs are listed on the London StockExchange. Ezz Steel's market capitalisation was approximately US$1.73 billion,based on the closing price of its shares as quoted by the CASE on 1 February2007. • The global offering will comprise an offering by Ezz Steel of its newly issued ordinary shares in the form of shares and GDRs. • In addition, Al Ezz Group Holding for Industry and Investment S.A.E. (the "Selling Shareholder") has granted the Joint Global Coordinators an over-allotment option to purchase existing ordinary shares and/ or GDRs representing up to 15% of the total number of shares (including GDRs) in the global offering. • It is envisaged that the global offering will be made to qualified investors in the European Union, qualified institutional buyers in the United States under Rule 144A, qualified institutional buyers or professional high net worth individuals in Egypt, and institutional investors outside the EU, the US, and Egypt, including investors in the Middle East, subject to applicable restrictions. • Ezz Steel is currently approximately 76.93%-owned by the Selling Shareholder. The Selling Shareholder will continue to own a majority of the share capital of Ezz Steel after the global offering. • Ezz Steel intends to use its net proceeds from the global offering on capital expenditures, principally to build an additional electric arc furnace to expand flat steel production and to build an additional DRI facility to further increase its vertical integration. • Citigroup and EFG Hermes are Joint Global Coordinators and Joint Bookrunners for the global offering and HSBC is acting as Co-Lead Manager. • Ezz Steel has today published a notice to convene an extraordinary shareholders' meeting for the purpose of approving the proposed global offering. Commenting on the announcement, Ahmed Ezz, Chairman and Managing Director of EzzSteel, said: "This announcement is an historic step for Ezz Steel, which has grown to becomethe MENA region's largest independent steel producer. The additional liquiditythis offering will bring will give us a great platform to further develop ourbusiness, enhance the efficiency of our production, increase our volumes and thevalue we can add." - Ends - Enquiries: Ezz Steel Kamel Galal, Investor Relations ManagerTel: +(20) 2 762 2144Email: kgalal@ezzgroup.com Capital MS&L +44 20 7307 5330Nicholas Bastin +44 207255 5117, +44 7931 500066Jennifer Martin +44 207 307 5335, +44 7841 401304 NOTES TO EDITORS Ezz Steel's business: Ezz Steel is the largest independent producer of steel in the MENA region and isthe market leader in Egypt. Ezz Steel produces long and flat products at itsmanufacturing facilities strategically located in the port cities of Alexandriaand Suez and in the Egyptian interior at Saddat City and 10th of Ramadan Cityand sells them to customers in Egypt and around the world. Its executiveheadquarters are located at 10, Shehab St., Mohandessin, Giza, Egypt 12411. This press release does not constitute or form part of any offer or invitationto sell, or any solicitation of any offer to purchase nor shall it (or any partof it) or the fact of its distribution, form the basis of, or be relied on inconnection with, any contract therefore. The offer and the distribution of thispress release and other information in connection with the offer in certainjurisdictions may be restricted by law and persons into whose possession anydocument or other information referred to herein comes should inform themselvesabout and observe any such restriction. Any failure to comply with theserestrictions may constitute a violation of the securities laws of any suchjurisdiction. Any offering of securities referred to herein will be made onlypursuant to an offering circular authorised by the Issuer for such purpose. In the United Kingdom, this communication is only directed at (i) investmentprofessionals falling within Article 19(5) of the Financial Services and MarketsAct 2000 (Financial Promotion) Order 2005 (the "Order") or (ii) high net worthentities, and other persons to whom it may lawfully be communicated, fallingwithin Article 49(2)(a) to (d) of the Order (all such persons together beingreferred to as "relevant persons"). The offered securities are only availableto, and any invitation, offer or agreement to subscribe, purchase or otherwiseacquire such securities will be engaged in only with, relevant persons. Anyperson who is not a relevant person should not act or rely on this communicationor any of its contents. Stabilisation/FSA. Any offer of securities to the public that may be deemed to be made pursuant tothis communication in any EEA Member State that has implemented Directive 2003/71/EC (together with any applicable implementing measures in any Member State,the "Prospectus Directive") is only addressed to qualified investors in thatMember State within the meaning of the Prospectus Directive. This press release is not an offer for sale of any securities of Ezz Steel inthe United States including its territories and dependencies, any state of theUnited States and the District of Columbia. No securities of Ezz Steel havebeen, or will be, registered under the US Securities Act 1933, as amended, andsecurities may not be offered or sold in the United States absent registrationor an exemption from registration under the U.S. Securities Act of 1933, asamended. No public offering of the securities will be made in the United States. 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