The Board of Directors at the Egyptian Iron and Steel Company (EISC) has approved the establishment of a new company with licensed capital of EGP 500m as part of its restructure process.
The approval was given at the board’s meeting, on Sunday, with the new company set up for the purpose of extracting and trading iron ore and other minerals.
The new company’s issued capital is EGP 195.3m distributed on 976.8m shares with nominal value of 20 piasters per share.
The EISC also gave majority approval to split up the company horizontally, according to the book value based on the financial statements in June. The step comes as one of the means of restructuring the company into two companies, with one parent and the other spun-off.
Moreover, the EISC will reduce the nominal value of its share from EGP 2 to EGP 1.80. The move is to maintain the same amount of shares at 976.8m, provided that the issued capitals of the parent and spun-off companies are EGP 1.75bn and EGP 195.3m, respectively.
The parent company will remain listed on the Egyptian Exchange (EGX) after reducing its capital data. The spun-off company will also be registered on the EGX, after it receives the commercial registry.
The EISC indicated that this is in light of previous decisions in October to separate mines and quarries activity from the company. The new company will be established and assigned, in order to allow for an evaluation committee to be established.
Earlier, EISC contracted with the Abdul Shaheed Law Firm to finish the legal procedures for separating the company’s mines from its factories and establishing a new company with the existing mines.
The company stated that the offer included a precise review of the implementation of all works in four phases. This comes in addition to specifying a short period for the implementation of that work based on the recommendations of the committee formed for this purpose.