The extraordinary general meeting (EGM) of the Egyptian Iron and Steel Company (Hadisolb) has approved liquidating the company's factory in Helwan, Cairo.
The EGM also approved demerging its mining unit.
In December, the board of Hadisolb approved a horizontal demerger, where the demerging company will manage the company's factories, while a newly demerged entity will be in charge of its mining and quarrying activities.
Prior to the demerger, Hadisolb's shares had a nominal value of EGP 2 ($0.13). Under the demerger, the shares of the demerging company would have a nominal value of EGP 1.8, while the shares of the demerged company would be worth EGP 0.2 each.
Per the demerger, the demerging company would hold EGP 2 billion ($127.6 million) in authorized capital and EGP 1.8 billion in issued capital, while the demerged company would hold EGP 500 million in authorized capital and EGP 195.4 million in issued capital.
Public Enterprise Sector Minister Hesham Tawfik said in a televised phone call that when he took over the ministry at the beginning of 2019, he found a development plan for Hadisolb, the conditions for which were set in 2017.
However, the former minister had postponed its implementation and requested to update a study on the plan.
Tawfik said the liquidation was not announced until workers' compensation had been settled.
Hadisolb said that it incurred net losses of EGP 982.8 million ($62.8 million) between July 2019 and June 2020,
Hadisolb's EGM attributed the liquidation to increasing losses and the company’s inability to continue operating.
Hadisolb was established in 1954.