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Solb Misr aims to exit Ataqa’s stake to raise capital

Solb Misr aims to exit Ataqa’s stake to raise capital
gyptian Steel Group - Solb Misr - (Photo Credit: Reuters Arabia)
Ataqa
ATQA
-2.50% 3.12 -0.08

Written by: Mahmoud Salah

Cairo – Mubasher: Egyptian Steel Group - Solb Misr in the middle of negotiations to divest its stake in Misr National Steel – Ataqa in order to raise its capital, Gamal El-Garhy, chairman told Mubasher.

Egypt’s deteriorating economic conditions as well as the increasing obstacles that steel producers had to face, through the last five years, drove the company to eye the probability of increasing its capital through adding a strategic investor.

Steel producers had to deal with increasing power cost, FX shortage and increasing production cost following Egypt’s uprising in 2011.

“The expected strategic investor isn’t among Egypt’s steel producers,” said El-Garhy.

The company’s chairman declined to unveil the identity of the strategic investor, or to state more details regarding the negotiations progress

Solb Misr owns 89.9% stake in Misr National Steel – Ataqa.