NBE In Talks With ARCOSTEEL Over Settling EGP 1.2 Bln Debts

The National Bank of Egypt (NBE) negotiates with the Arab Company for Special Steel (ARCOSTEEL) over settling EGP 1.2 billion worth of debt owed by the company since years.

These negotiations have started two weeks ago and a deal is expected to be signed during Q1. The bank acquires 7% of the Company’s capital and a commercial mortgage over the Company’s assets and another mortgage over the Company’s real estate assets.

ARCOSTEEL’s authorized capital reached EGP 800 million and issued and paid-up capital registered EGP 346.1 million, distributed over 1.7 million shares at a par value of EGP 200 per share.

The Company’s ownership structure is divided as follows: the National Investment Bank (19%),  Misr Insurance Company (13%), Al-Sharq Insurance Company (10%), Holding Company for Metallurgical Industries (9%), Egyptian General Petroleum Corporation (8%), National Bank of Egypt (7%), Egyptian Reinsurance Company (7%), Suez Canal Authority (6.5%), Industrial Development & Workers Bank of Egypt (5%) and Arab Investment Company that is owned by governments of 17 Arab states (7%).

ARCOSTEEL was offered for sale in 2007 but the Saudi Al-Tuwairqi Group decided to retreat from submitting its bid to compete with Ezz Steel over acquiring 80% of the Company. This made ARCOSTEEL cancelled the sale.