An Egyptian criminal court sentenced Ahmed Ezz, former chairman of
Egypt's leading steel producer Ezz Steel, for ten years and fined him about $111 million and annulled two of Ezz Steel's operating licenses obtained illegally. Accordingly, the shares of Ezz Steel slumped by 9 percent in the Egyptian stock market.
The former minister of commerce, Rachid Mohamed Rachid was also sentenced to 15 years in prison and a $230 million fine for illegally helping Mr. Ezz obtain
steelmaking permits.
According to the company statement, the licenses in question include the two expansion licenses issued to Ezz Steel's subsidiaries, Ezz Rolling Mills and Ezz Flat Steel. Ezz Steel also stated that the annulment of the licenses will not impact the current activities of the company. The statement said that Mr. Ezz will appeal the court ruling