The disposal of several land plots to settle debts owed to Metallurgical Industries Holding Co and Banque Misr, and part of the debt owed to Petrotrade has been approved The ordinary general meeting (OGM) of the Egyptian Iron and Steel (Hadisolb).
The company will continue its operations over the land plots that are passed on to the Metallurgical Industries Holding Co without any consideration.
In a separate statement, the company said that its shareholders approved the liquidation of its steel plant and spin-off of its mining operations.
The liquidation will be based on the company’s financial position as of 31 December 2020.
The reason for liquidation is the rising incurred losses of the company which reached 8.2 billion Egyptian pounds as of 30 June 2020, representing 547 percent of the shareholders’ rights as well as its inability to meet its commitments, including the wages of employees and production requirements.
The shareholders also approved the horizontal demerger of the company based on the book value of the stock as of 30 June 2020.
The move will see Hadisolb spin off its mining business to create the Egyptian Iron and Steel for Mining and Quarrying which will have an authorised capital of 500 million pounds and an issued capital of 195 million pounds, while Hadisolb’s authorised capital will stand at 2 billion pounds and its issued capital at 1.758 billion pounds.
Following the announcement, the EGX resumed trading on the company’s stock after being suspended on Tuesday.