The Egyptian Electric Cables Company bought 756.4 thousand treasury shares during Monday’s trading session.
The board of directors of the Egyptian Electric Cables Company agreed to purchase treasury shares through the open market, provided that the prescribed legal percentage does not exceed 10% of the total shares of the company, as it is a good investment opportunity for the company.
The implementation will take place from today March 23 until June 22, at the same price of the security during the trading sessions during the execution period.
The profits of the Egyptian Electric Cables Company decreased by 19.9% during the past year to reach 133.5 million pounds, compared to a net profit of 166.8 million pounds during the previous year 2019, taking into account the rights of the minority shareholders.
The company’s revenues decreased during the past year 2020 to reach 1.74 billion pounds, compared to total sales of 2.03 billion pounds in the previous year.
The Egyptian Electric Cables Company agreed to sell the total 89.29 million shares of the treasury owned by the company.
The company added that treasury shares will be dealt during the period from February 18 to March 17.
With regard to the justifications for the sale, the company indicated that the period allowed for owning treasury shares is approaching the end of the period.
She explained that the percentage of ownership in the company’s shares before the implementation of the sale is 2.5%, and it is scheduled to reach zero after the completion of the implementation.
It indicated that Pioneers Securities Brokerage is the brokerage company that executes the sale.
During the 9 months of this year, the company achieved a net profit of 104.38 million pounds from the beginning of January until the end of last September, compared to 116.18 million pounds during the same period last year, taking into account the rights of the minority.
The company’s sales declined during the nine months to 1.25 billion pounds by the end of September, compared to 1.59 billion pounds during the same period last year.
The Board of Directors of the Financial Supervisory Authority agreed in early March 2020 to amend the provisions regulating dealing with treasury shares through companies listed on the stock exchange, mentioned in Article 51 of the registration rules, with the exception of the prior notification period, which was decided at least three working days before the proposed date of implementation.
The supervision has also issued temporary exceptional procedures that allow the aforementioned companies to notify the stock exchange on the same day that is proposed for implementation to purchase treasury shares through the open market and at the price of the security during the trading session, provided that the quantity requested to be purchased does not exceed the legally established percentage, which is 10% of the company’s shares.
In light of these procedures, the main shareholders of the company pledge not to participate in the sale, and if the company’s purchase of treasury shares results in the voting rights of any of them exceeding the required rates to submit a compulsory purchase offer. The closest general assembly of the company is in accordance with the provision of Article 51 of the registration rules, and in all cases, he shall not purchase the securities until the completion of these procedures.
The Financial Control will announce the date of the end of the work with these exceptional measures, and it is also entitled to suspend those procedures for any of the companies in a way that guarantees the correctness and integrity of the transactions on the securities.
The article “Electric Cables” to buy 756,000 treasury shares yesterday was written in the Al-Borsa newspaper.