Last checked at 13 Nov 2013 07:00
Response to Economic Court Ruling
Cairo, 13 November 2013 - ezzsteel (EGX: ESRS; London Stock Exchange: AEZD), the largest independent producer of steel in the MENA region and market leader in Egypt, today announced a statement following a verdict issued on 6 November 2013 by the Cairo Economic Appeal Court (the "Court"), regarding the on-going case concerning alleged monopolistic acts.
The Court has accepted the appeal filed by the Public Prosecution in form and substance, and overruled the First Instance's verdict, and fined the first two defendants 100 million Egyptian Pounds and the third defendant 500 thousand Egyptian Pounds for alleged monopolistic practices during the period 2005/2006.
This decision follows that of the First Circuit of Cairo Economic Court (First Instance) on 30 June 2013, that discharged Eng. Ahmed Ezz and the defendants from any monopolistic practices in the Egyptian market.
The Company and management maintain its position that it did not violate any laws nor did it commit any monopolistic practices.
An appeal will be made against the Economic Court's verdict, which is contrary to the Egyptian Competition Authority's (ECA) report and the ECA's Board of Director's Decisions.
The ECA had already investigated ezzsteel for anti-competitive practices on two prior occasions, once before and once after the revolution.
The first report in 2009 covered the period from May 2005 until the end of 2006, and the second report was issued in 2012 and covered the period from 2007 to 2010. Both reports concluded that ezzsteel did not engage in any anti-competitive practices.
The decision will not affect any of the Company's future investment plans nor does it affect its ongoing operations.
For further information:
ezzsteel
Kamel Galal | +20 2 3304 6060 | +20 100 539 5499 | |
Ashraf El Ghannam | +20 2 3304 6060 |
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Capital MSL |
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Nick Bastin | +44 20 3219 8814 | +44 7931 500 066 | |
Ian Brown | +44 20 3219 8817 | +44 7908 251 123 | |
Richard Gotla
| +44 20 3219 8819
| +44 7957 486 985
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About ezzsteel
Ezzsteel is the largest independent steel producer in the Middle East and North Africa, and the Egyptian market leader, with a total actual capacity of 5.8million tonnes of finished steel.
In 2012, the Company produced 3.9million tonnes of long products (typically used in construction) and 893,000 tonnes of flat products (typically used in consumer / industrial goods). ezzsteel deploys the latest in modern steel making technology and is committed to further increasing vertical integration across its plants, to boost operational flexibility.