The Egyptian Iron and Steel Company will establish a new company to separate the mining and quarrying work it undertakes from its other activities.
The decision was made during an extraordinary general assembly on Monday. In a statement, the company said the new joint stock company will be owned by the same current shareholders.
The Egyptian Iron and Steel Company will form a committee to prepare the evaluation regarding the division into two companies, and their respective assets and liabilities.
It will also prepare the financial statements for the two companies, as well as the hypothetical financial statements for the previous two years, which will be presented to the Central Auditing Organization for their review.
A report will be additionally prepared that will be presented to the verification committee formed in accordance with Article 19 of Law 203 of 1991, and amended by Law No 185 of 2020.
The company said that it takes into account Article 48 of the rules for listing and delisting securities on the Egyptian Exchange (EGX) in preparation for submission to the company’s extraordinary general assembly.
It is expected that the general assembly will approve the division and all procedures in accordance with the due legal rules, and according to the presented memorandum.
The company reported losses amounting to EGP 887.37m during fiscal year (FY) 2019/20, compared to losses amounting to EGP 1.52bn in the previous FY.
During FY 2019/20, the company achieved sales of EGP 1.08bn, compared to sales of EGP 1.24bn in the previous fiscal year.