Jordan's Arab Potash Company plans to acquire the Jordan Safi Salt Company (JOSSCO) and put a halt to the latter's "financial bleeding," reported the Jordan Times newspaper on Monday.
“JOSSCO will be fully owned by the APC and will become one of its departments,” APC board chairman, Suleiman Hafez, told the paper.
Currently, the APC owns a 24 percent in JOSSCO, which has been suffering heavy losses since its establishment in 1996, and now plans to purchase the remaining shares.
As a means to help JOSSCO, the APC has exempted JOSSCO from a portion of debts while also agreeing to reschedule others, said the paper.
Currently, APC is debt servicing JOSSCO's $10 million debt to a London-based bank.
By end of 2000, JOSSCO's dues to the APC amounted to around $12 million, said Hafez.
“Full ownership will save JOSSCO, specially after Qatari investors backed away from an earlier agreement to acquire 40 per cent of JOSSCO and channel JD4 million in capital,” Hafez said.
He added that an ownership decision will only be taken after a comprehensive study on JOSSCO's financial status is completed - Albawaba.com
© 2001 Al Bawaba (www.albawaba.com )