Ezz Dekheila Steel valued at more than EGP 1k per share ahead of stake sale: The Sovereign Fund of Egypt (SFE) has received a preliminary valuation of Ezz Steel subsidiary Ezz Dekheila Steel that puts the company’s worth at some EGP 1,060.00 per share, Asharq Business reports, citing sources familiar with the matter. The valuation was conducted ahead of a potential sale that could see the government offload a 14% stake in the EGX-listed Ezz Dekheila to its parent firm.

Remember: News of a potential stake sale broke last month when several local outlets reported that Ezz Steel was in negotiations with the government to purchase the shares in Ezz Dekheila held by the National Investment Bank (NIB) and the National Bank of Egypt (NBE). A government source confirmed to us the existence of the talks.

A closer look at the numbers: The proposed share price estimates the company’s total worth at more than EGP 20.7 bn and represents a premium of almost 30% on the company’s closing share price on Thursday.

What they said: Steel giant Ezz Steel has neither made nor received a formal acquisition offer and did not initiate a valuation, a source at the company told Enterprise yesterday, reiterating what the company saidin an EGX disclosure last month. We were unable to reach a representative of the SFE, whose role in the transaction remains unclear.

Shareholder structure: NIB holds an 8.1% stake in Ezz Dekheila Steel while NBE owns 5.7% — together forming the 14% stake that the government allegedly plans to divest. Other state institutions hold about 17.2% of the company. Ezz Steel holds a majority stake of 64% and the remainder is in freefloat.

Market reax: Ezz Dekheila Steel’s share price jumped 12.7% to close at EGP 925.06 apiece during yesterday’s trading session. Ezz Steel shares closed 6.9% higher at EGP 38.50.

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