Jordinvest Raises Its Capital to 23.6 Million Shares
Jordinvest and JD Capital Sign Strategic Partnership Agreement
With a lockup period of 2 years
Amman, Jordan (February 2006) – Jordan Investment Trust PLC (Jordinvest) held its extraordinary general assembly meeting on February 11, 2006. During the meeting the firm announced its aims to raise its capital by 6,611,111 shares. This advancement came into effect after Jordinvest had formed a strategic partnership with Jordan Dubai Capital (JD Capital) in the form of a private placement with a lockup period of 2 years.
With this acquisition, Jordinvest's capital will increase from 17 million to 23.6 million shares. JD Capital's share will therefore represent 28% of Jordinvest new capital, making it the second largest shareholder of Jordinvest.
JD Capital conducted this investment with the aim of capitalizing on the growth seen in the Jordanian economy. This strategic move has proven to be of mutual benefit for both parties involved. For JD Capital, this investment will be a strong return on investment as the company becomes a new strategic partner and investor in the local and regional markets.
On the other hand , this newly formed strategic partnership will grant Jordinvest wider access to regional markets, larger client base, more credibility, add opportunities for expansion and strengthen its brand name.
In light of this development, Mr. Ahmad Tantash, Chairman/CEO of Jordinvest, said that this acquisition is a stepping stone for the firm, and will definitely serve to expand our business and client base regionally and internationally."
Mr. Tantash also added that this partnership is inline with Jordinvest’s regional vision. "We always strive to be the premier investment institution in Jordan and the region, and our new partnership with JD Capital will help us achieve that by enlarging our customer base which will ultimately be reflected in Jordinvest’s revenues and bottom line.” Mr.Tantash added “through solidifying this partnership with JD Capital, I am sure that we have come a lot closer to realize the vision that was set in place in 2005.”
Commenting further on the acquisition, H.E. Mr. Samir Al-Rifai Chairman/CEO of JD Capital said: “Regarding investments prepared for the next stage of JD Capital, this strategic partnership represents a fruitful investment opportunity for both parties through which we aim at developing a synergetic relationship between both companies and benefit from Jordinvest's resources and potential. He added: “This new partnership will give us the opportunity to assume a more significant role as a new partner and investor in Jordan and the region, in line with the vision for investment of JD Capital. This partnership also aims at enabling Jordinvest, one of the leading local companies in the field of financial management and asset management to compete on the regional level by benefiting from the relationships of JD Capital, especially the one with Dubai International Capital, the investment vehicle of Dubai Holding”.
Al-Rifai explained that this new investment step will positively reflect on Jordan’s economy and on the position of large Jordanian companies, such as Jordinvest, in the regional market. He also referred to the benefit this partnership provides for shareholders in both companies.
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