The Jordan Dead Sea Industries Company will soon be a thing of the past, as the purpose of the firm is no longer valid.
JODICO, a six-year-old firm, was established by the Arab Potash Company (APC) in order to set up and run other firms which specialise in Dead Sea products.
Accordingly, JODICO established three companies, the Jordan Safi Salt Company (JOSSCO) and Jordan Magnesia, in which it holds majority of shares, and Jordan Bromine, where it maintains a 40 percent stake.
“JODICO's raison d'Ítre has been achieved, and it is time for the APC to retain full ownership of JODICO,” said an APC official.
“The acquisition will eliminate the extra costs of running JODICO, and will result in direct supervision over the three companies without the need for a mediator,” added the official, preferring anonymity.
According to the official, the APC has now acquired the majority of shares and is to buy the rest from the Jordan Investment Corporation (JIC).
“Big shareholders were given shares in the magnesia company against shares in JODICO, while the JIC is to acquire a stake in JOSSCO, which will be finalised soon,” he told the Jordan Times.
Before the start of the take-over process, JODICO's shareholders included the Social Security Corporation—18 percent, Jordan Investment Corporation—10 percent, Jordan Phosphate Mines Company—6 percent, Arab Bank—3.5 percent, Housing Bank for Trade and Finance—1.67 percent, and other small investors.
The source noted that the ongoing buying scheme is in line with a study that evaluated the shares in all APC companies.
JODICO employees, the official stressed, have been absorbed by the parent company. — ( Jordan Times )
By Rana Awwad
© 2000 Mena Report (www.menareport.com)