Bloomberg News

Ezz Heads to 3-Week High on Reported Deal to Reclaim Licenses

January 12, 2012

Jan. 12 (Bloomberg) -- Ezz Steel, Egypt’s biggest publicly traded steel manufacturer, headed for the highest close in more than three weeks on a report the government will hand back its court-revoked production licenses in exchange for a fee.

Shares of Ezz advanced 1.5 percent at 11:10 a.m. in Cairo, heading for the highest close since Dec. 21. The stock plunged 81 percent in 2011, compared with a 49 percent drop for the benchmark EGX 30 Index.

The government has proposed that four companies, including Ezz Steel, pay a combined 1.47 billion pounds ($240 million) to take back their licenses, Al Shorouk reported today. They will be allowed to pay 15 percent up front and the rest over five years, the Cairo-based newspaper said. Ezz will need to pay 660 million pounds for the two licenses affected by the ruling, the newspaper said.

The licenses had been revoked because of irregularities in the awarding process.

--Editors: Chris Peterson, Alan Purkiss

To contact the reporter on this story: Ahmed A Namatalla in Cairo at anamatalla@bloomberg.net

To contact the editor responsible for this story: Claudia Maedler at cmaedler@bloomberg.net


Video Game Avenger
LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus