Extraordinary General Assembly Meeting resolutions

EZZSTEEL - Extraordinary General Assembly Meeting - Resolutions

Cairo, 23 September 2019 - ezzsteel (EGX: ESRS; London Stock Exchange: AEZD), the largest independent producer of steel in the MENA region and market leader in Egypt, informs that the Extraordinary General Assembly Meeting held on September 22, 2019 at 3:00 pm of its subsidiary company, Al Ezz Dekheila Steel Company Alexandria (EZDK) approved the following resolutions:

1. Increasing the company's authorized capital from LE 1.5 billion to LE 4.0 billion

2. Increasing the issued capital from LE 1,336,441,300 to LE 2,553,961,500, an increase of LE 1,217,520,200, distributed over 12,175,202 shares at fair value per share, according to the study of the Independent Financial Advisor, which amounts to LE 1176.85 per share at LE 100/share nominal value plus LE 1076.85/ share as issuance premium, without issuance fees. This is in the context of EZDK's acquisition of up to 42,000,000 shares, representing 56% of the shares of Ezz Flat Steel, and up to 89,898,683 shares representing 100% of the shares of Ezz Rolling Mills based on the fair value of the shares, according to the Independent Financial Advisor study, of USD $10.09 per share for Ezz Flat Steel and EGP 23.07 per share for Ezz Rolling Mills. The acquisition will take place by inviting the old shareholders to subscribe, each according to their shareholding percentage, in cash or using credit balances resulting from EZDK's acquisition of their shares in Ezz Flat Steel and Ezz Rolling Mills based on the fair value of the shares according to the study of the Independent Financial Advisor, with the rights of trading separate from the original share. (Subject to the provisions of Article 30 of the Executive Regulations of Law 95 of 1992).

3. Authorize the Board of Directors to amend Articles (6) and (7) of the Company's Articles of Association in the light of the results of the subscription in the capital increase.

4. Authorize the Board of Directors or his authorized representative to make any amendments deemed necessary by the Financial Regulatory Authority, the General Authority for Investment and Free Zones, as well as all other governmental and administrative bodies, to finalize the capital increase procedures.

EZDK undertakes that it has sent all necessary information and important resolutions that are of interest to shareholders and has not withheld any information that could affect the share price.

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