Egyptian billionaire businessman Ahmed Ezz, founder of leading steelmaker Ezz Steel, has further solidified his control over the company by snapping up additional shares in a deal worth EGP344 million ($11.1 million).
The transaction, brokered by Hermes Financial Group, saw Ezz acquire roughly 4.3 million shares at an average price of EGP80 ($2.59) per share from fellow Egyptian steel magnate Jamal El-Garhy — this strengthens Ezz’s position as the majority shareholder.
Latest purchase strengthens Ezz’s grip
Ezz Steel — the largest independent steel producer in the Middle East and North Africa — has delivered impressive financial results in recent times, further strengthening investors’ interest and confidence. With a total output of 5.14 million metric tonnes, Ezz Steel is far ahead of Saudi Arabia’s Hadeed and Emirates Steel.
Prior to the transaction, Ezz held a commanding 60.71-percent stake. Mineral Investment Development and El-Garhy Steel Group followed with 7.44 percent and 5.93 percent, respectively. The latest purchase strengthens Ezz’s grip, solidifying his position as the group’s dominant shareholder.
Ezz Steel dominates MENA market with stellar financial performance
Ezz Steel’s financial performance in the first nine months of 2023 has been nothing short of impressive. Profits soared to EGP27.9 billion ($883.1 million), a significant jump from the previous year’s EGP22.1 billion ($709.6 million). Sales followed suit, surging from EGP60.6 billion ($1.96 billion) to EGP103.2 billion ($3.34 billion) – a 70-percent increase year-over-year.
Ezz’s latest acquisition comes on the heels of a significant surge in Ezz Steel’s share price on the Egyptian Exchange. Between Nov. 1 and 22, the market value of his existing stake climbed by EGP1.77 billion ($57.53 million), solidifying his position as both a leading investor on the bourse and one of the country’s wealthiest individuals.
