Extraordinary General Assembly Meeting resolutions

EZZSTEEL - Extraordinary General Assembly Meeting - Resolutions

Cairo, 23 September 2019 - ezzsteel (EGX: ESRS; London Stock Exchange: AEZD), the largest independent producer of steel in the MENA region and market leader in Egypt, informs that the Extraordinary General Assembly Meeting held on September 22, 2019 at 4:00 pm of its subsidiary company, Ezz Dekheila Steel Company Alexandria (EZDK) approved the following resolutions:

1. Increasing the issued capital from LE 2,553,961.500 to LE 2.636,441.300, an increase of LE 82,479,800, distributed over 824,798 shares at fair value per share, according to the study of the Independent Financial Advisor, which amounted to LE 1176.85 / share at LE 100 / share at a nominal value plus EGP 1076.85 / share issuance premium, without issuance fees. This is in the context of EZDK's acquisition of up to 42,000,000 shares, representing 56% of Ezz Flat Steel, and up to 89,898,683 shares with 100% of the shares Ezz Rolling Mills based on the fair value of the shares, according to an Independent Financial Advisor of $10.09 prt share for Ezz Flat Steel, and EGP 23.07 per share for Ezz Rolling Mills, to shareholders of Ezz Flat Steel and Ezz Rolling Mills (namely, National Bank of Egypt, Banque Misr, and other Shareholders) in exchange for their credit balances resulting from EZDK acquiring their shares in Ezz Flat Steel and Ezz Rolling Mills on the basis of fair value of the shares, according to the Independent Financial Advisor's study.

2. Authorize the Board of Directors to amend Articles (6) and (7) of the Company's Articles of Association in the light of the results of the subscription in the capital increase.

3. Authorize the Board of Directors or his authorized representative to introduce any amendments deemed necessary by the Financial Supervisory Authority, the General Authority for Investment and Free Zones, as well as all other governmental and administrative bodies, in terminating the capital increase procedures.

EZDK undertakes that it has sent all necessary information and important resolutions that are of interest to shareholders and has not withheld any information that could affect the share price.

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