While the FRA has no objections to the delisting, it has outlined a series of conditions that Ezz Steel must adhere to in order to ensure the process moves forward smoothly
The Financial Regulatory Authority (FRA) has confirmed its approval for Ezz Steel's voluntary delisting from the Egyptian Exchange (EGX), paving the way for the company to proceed with its planned exit from the bourse, according to the company’s Chairman and Managing Director Hassan Nouh.
While the FRA has no objections to the delisting, it has outlined a series of conditions that Ezz Steel must adhere to in order to ensure the process moves forward smoothly, Nouh explained in a disclosure to the EGX.
The approval follows Ezz Steel's submission of a formal request, accompanied by a disclosure report approved by the company’s Board of Directors on December 7, 2024, and submitted to the FRA on December 8, 2024.
These conditions, which must be met before the company calls an Extraordinary General Assembly (EGA) to vote on the delisting, include several procedural steps.
Before the EGA can be convened, Ezz Steel must publish the executive summary of the independent financial advisor's report, which includes the fair value of the company's shares for the purpose of voluntary delisting.
This summary, along with the accompanying documents, must be made available on the EGX trading screens at least 15 days before the EGA meeting, and be accessible at the company's headquarters for shareholder review during this period.
Voting at the EGA will be restricted to minority shareholders holding free-floating shares, excluding the principal shareholder and related parties. For the delisting to be approved, at least 75% of the votes from eligible minority shareholders must be in favor of the move.
The company's voting rules also ensure that dissenting shareholders holding up to 10% of the company’s shares retain their voting rights, regardless of their objections.
Ezz Steel must also ensure that all procedures for delisting, as outlined in EGX regulations, are completed.
After the EGA approves the voluntary delisting, the shareholder requesting the delisting must seek an exemption from submitting a mandatory tender offer (MTO).
The company intends to finance its delisting through external financing with a maximum limit of $300 million.
