EZDK Acquisition

ezzsteel is a majority shareholder in EZDK (formerly ANSDK), a company listed on the Egyptian Stock Exchange, along with public sector companies (who own approximately 45% of EZDK) and stock market investors. EZDK was established between Egyptian public sector companies, global development agencies (including the IFC and African Development Bank) and Japanese corporate enterprises. EZDK was never privatised; ezzsteel did not acquire any shares from the public sector companies but invested directly in EZDK in 1999 following a capital increase. The company subsequently increased its equity participation through the acquisition of shares from foreign shareholders. Those acquisitions were funded through internal cashflows, equity contribution, commercial loans and debt securities issued on the Egyptian Stock Exchange. The public sector shares in EZDK still remain held by State-owned entities, which have benefited from capital appreciation and dividend distributions over the years. The value of EZDK shares – including those owned by public sector companies - has increased substantially post-acquisition. This evidences that the ezzsteel-EZDK strategic alliance has in fact directly benefited public wealth.