Acquisition

EZZ Steel Company - S.A.E.

5 August 2019

EZZSTEEL

Cairo, 5 August 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 on 4 August 2019 the Board of Directors of its subsidiary company, Al Ezz Dekheila Steel Company Alexandria adopted the following resolutions:

1.     Approval of the report of the independent financial advisor (Grant Thornton Financial Consultancy) which set the fair value of Al Ezz Dekheila Steel Company shares at EGP 1,176.85 per share, the fair value of Al Ezz Flat Steel shares at US$10.09 per share and the fair value of Al Ezz Rolling Mills shares at EGP 23.07 per share, and approving the external auditors' report on the same.

2.     Approval of the acquisition by Al Ezz Dekheila Steel Company of up to 42,000,000 shares representing up to 56% of the issued capital of Al Ezz Flat Steel (totaling 100% of the issued capital including the current 44% shareholding owned by Al Ezz Dekheila Steel Company) and up to 89,898,683 shares representing up to 100% of the issued capital of Al Ezz Rolling Mills based on the fair value of the shares.

3.     Approval of the increase of the authorized capital of Al Ezz Dekheila Steel Company from EGP 1.5 billion to EGP 4.0 billion.

4.     Approval of the increase of the issued capital of Al Ezz Dekheila Steel Company by 13,000,000 shares at a fair value of EGP 1,176.85 per share constituting the nominal value of EGP100 per share plus the share issue premium of EGP 1,076.85, and

(A)   Inviting the shareholders to subscribe 12,175,202 shares out of the capital increase of 13,000,000 shares according to the percentage of their capital contribution, in cash or using the credit balances resulting from the acquisition by Al Ezz Dekheila Steel Company of their shares in Al Ezz Flat Steel and Al Ezz Rolling Mills;

(B) Allotting the balance of 824,798 shares to the remaining shareholders of Al Ezz Flat Steel and Al Ezz Rolling Mills in exchange for the credit balances resulting from the acquisition by Al Ezz Dekheila Steel Company of their shares in Al Ezz Flat Steel and Al Ezz Rolling Mills.

5.     Delegating the Chairman of the Board to convene the Extraordinary General Meeting to approve the increase of the authorized and the issued capital in accordance with the foregoing also issuing disclosure forms and implementing required ammendments.

Ahmed Nabil

Investor Relations