The Egyptian Financial Regulatory Authority (FRA) decided to suspend trading on the shares of the Egyptian Iron and Steel Company (under liquidation), and to cancel the operations carried out in today’s session.
The Financial Supervision said in a statement to the Egyptian Stock Exchange (EGX) on Wednesday that it was also decided to cancel all offers and requests registered on Egyptian iron and steel shares, provided that the company’s shares will be re-traded starting from tomorrow’s session, December 2.
It attributed its decision to the data published on the Egyptian iron and steel shares, including the statement of the Holding Company for Metallurgical Industries regarding the company’s position, including the debt due on May 31, which amounts to EGP 9 billion.
It added that the indebtedness is expected to rise by another EGP 2.25 billion, which represents the value of workers’ compensation that the holding company borrowed to pay to workers, in addition to the failure to evaluate the land owned by the company to date, provided that the evaluation is done through 3 specialized offices.
The FRA pointed out that the Egyptian iron and steel share price increased by 11% during the month of November.
The regulatory authority added that amendments to the rules of compulsory delisting of companies under liquidation will be considered, and coordination with the EGX and Misr El Makasa will be done according to the rules of trading on companies under liquidation.
It is noteworthy that the company recorded losses amounting to EGP 437.05 million during the period from July to December, compared to losses amounting to EGP 478.18 million during the same period of the previous fiscal year.
The company’s revenues declined during the six months to reach EGP 555.28 million at the end of December, compared to EGP 583.25 million, year-on-year.
The Ordinary General Assembly of the Egyptian Iron and Steel Company had agreed to dissolve and liquidate the company immediately upon the completion of the division process, and to appoint liquidators, provided that the company’s financial position on December 31, 2020 shall be the basis for liquidation.