Ezz Steel: Ahmed Ezz's Strategic Steel Move

Ahmed Ezz
Ahmed EzzImage Source: Wikipedia

Synopsis:

Ahmed Ezz acquired Jamal El-Garhy’s Ezz Steel shares for EGP 344m, comprising 4.3 million shares at an average price of EGP 80 per share. The deal, mediated by Hermes Financial Group, shifted El-Garhy's 5.93% stake. Ezz Steel's structure pre-deal included Ezz at 60.71%, Mineral Investment Development at 7.44%, and El-Garhy at 5.93%, with the remainder in the stock market.

Article:

In a substantial market maneuver, Ahmed Ezz secured Jamal El-Garhy’s Ezz Steel holdings for EGP 344m. The transaction encompassed 4.3 million shares, priced at an average of EGP 80 per share. Hermes Financial Group facilitated this significant shift in ownership, impacting El-Garhy’s 5.93% stake within Ezz Steel.

Before this acquisition, Ezz Steel’s ownership landscape delineated Ahmed Ezz as the majority holder at 60.71%, followed by Mineral Investment Development at 7.44%, and Jamal El-Garhy at 5.93%. The remainder was dispersed across the stock market, contributing to the company's diversified ownership.

Ezz Steel's financial report showcased robust performance, marking a profit surge to EGP 27.9bn during the first nine months of 2023. This upsurge was accompanied by a noteworthy increase in sales, rising to EGP 103.2bn from the prior year’s EGP 60.6bn. However, the amplified sales also led to escalated costs, reaching EGP 45.36bn by June 2023, compared to EGP 28.23bn in the parallel period of 2022.

Conclusion:

Ahmed Ezz’s acquisition of Jamal El-Garhy’s shares in Ezz Steel for EGP 344m signifies a pivotal change in the company’s ownership structure. This substantial shift comes amidst impressive financial gains for Ezz Steel, with significant increases in profit and sales, albeit accompanied by escalated costs. This acquisition cements Ezz’s position as a dominant force within the steel industry.

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