Cairo – Mubasher: The Financial Regulatory Authority (FRA) approved the publication of the disclosure report of Egyptian Electric Cables regarding its capital increase.
According to the FRA today, the disclosure report includes proceeding with the procedures to convene the Extraordinary General Meeting to consider increasing the issued and paid-up capital from EGP 662.708 million to EGP 1.312.708 billion.
The increase amounts to EGP 650 million, distributed over 3.25 billion shares at a nominal value of EGP 0.20 per share (while applying preemptive rights for existing shareholders).
The FRA's approval included the following observations and conditions:
– The agenda of the Extraordinary General Meeting must include a separate item regarding the use of the increase proceeds, and that the purpose thereof is to settle a portion of the company's existing bank credit facilities, amounting to approximately EGP 3.4 billion.
– Preparing a detailed and updated feasibility study that includes assumptions, valuation methodology, risks, and expected financial impacts, and presenting it a sufficient time prior to holding the Extraordinary General Meeting.
– The commitment of principal shareholders and related parties to subscribe to the full preemptive rights designated to them in the capital increase, and not to waive them to third parties.
– Updating the expected credit loss study and providing a statement of its impact on the financial statements for the fiscal year ending December 31, 2026, in accordance with the Egyptian Accounting Standards.
