JOSSCO finds strategic partnership with Qatari company
The Qatari Salt Company will soon become a major shareholder in the Jordan Safi Salt Company (JOSSCO) as a deal concluding their partnership is expected in a months time.
Under the package, the private Qatari company will acquire a 40 per cent stake in JOSSCO, while channelling JD4 million in capital to the company.
The deal is the fruit of persistent efforts by the Jordanian company to acquire a strategic partnership, with the Qatari company as its first choice.
In March, both sides signed a memorandum of understanding setting the conditions of the deal. Negotiations continued until last Friday when the two sides celebrated the initial signing of their deal.
In preparation for the deal, JOSSCO has halved its capital to JD6 million, with the second half used to write off accumulated losses of JD6 million.
With the entrance of the Qatari investors, who are getting three seats on the board, the company's capital will rise to JD10 million.
According to company officials, the deal is due to be finalised pending the approval of the Ministry of Trade and Industry and the Jordan Securities Commission. Both bodies, added the official, showed no objection to the deal, and are expected to give the go-ahead towards the end of November.
Established in 1996, as a 52 per cent owned subsidiary of the Jordan Dead Sea Industries Company (JODICO), JOSSCO is Jordan's biggest salt company and specialises in manufacturing both industrial and table salt.
The Arab Mining Company and the Arab Potash Company (APC) each have a 10 per cent stake in JOSSCO.
However, before the end of the year, the APC intends to retain full ownership of JODICO by going ahead with its planned liquidation of the company. — ( Jordan Times )
By Rana Awwad
© 2000 Mena Report (www.menareport.com)