Jordinvest successfully completes its role as the Financial Advisor for the privatization of Jordan Airline Training and Simulation

Amman, Jordan (August 2006) - Jordinvest successfully completed its role as the Financial Advisor to the Royal Jordanian Executive Privatization Committee (RJEPC) in regards to the privatization of Jordan Airline Training and Simulation (JATS). JATS is the aviation training center previously fully owned by Royal Jordanian Investment Co (RJI).  With its outstanding successes, and notable achievements, this deal grants Jordinvest yet another triumph in its already impressive portfolio of achievements.

Jordinvest was originally selected in July 2005 by Royal Jordanian Executive Privatization Committee (RJEPC) as the financial advisor for JATS’ privatization process.

Jordinvest was granted this task on account of the demonstrated technical and financial expertise of its skilled team members. Over a period of approximately one year; it provided financial advisory and consultation services to JATS. In compliance with the conditions stipulated in the agreement signed, Jordinvest provided RJEPC with a comprehensive review and analysis of its financial status, Due Diligence and constructed a five year business plan for the entity. In addition to financial valuation which was implemented, using three different international practiced methodologies; On another level, the agreement also enabled Jordinvest to be part of a technical team responsible for choosing pre-qualification terms and conditions for potential bidders. Through taking on this role Jordinvest also took part in both reviewing expressions of interest from bidders, and presenting results to the Royal Jordanian Executive Privatization Commission (RJEPC). Jordinvest assisted JATS in successfully completing processes pertaining to its privatization in accordance with international standards of excellence and professionalism.

The results achieved through this agreement were outstanding. 80% of JATS’ shares were sold to the Oriental Investment Group for Tourism and Development in a deal worth US$ . 14.750 million, the sale will be executed through a debt swap with the United Kingdom Government with a 38% discount.

Commenting on the deal made between Jordinvest and JATS, Chairman/CEO of Jordinvest, Mr. Ahmad Tantash said,” This deal presented itself as a great challenge for us, since we were required to achieve specific goals in specific time. I am proud to say that we have not only achieved all our objectives, but also surpassed them. Within a period of one year, Royal Jordanian Investment (RJI) was able to sell 80% of its JATS shares, while retaining 20% for Royal Jordanian, and this in itself is a great achievement “ 

From his end the Executive Vice President  Mr. Hani Al-Ali said, “The positive results we had achieved through our partnership with JATS  only serve to open more doors of opportunity for us. I believe that this agreement will allow us to work on similar projects with other entities in the future. Our reputation of professionalism locally and regional investment field is our ticket to further success, for we at Jordinvest always strive to expand our client base”

Mr. Nizar Darwish, Vice President/ Corporate Finance at Jordinvest, thanked the members of the corporate finance team for the massive efforts they exerted towards ensuring that JATS achieves all its financial objectives. 

“We at Jordinvest realize that the process of privatization in general plays a pivotal role in the development of Jordan’s Economy. We, on our part draw  upon the extensive experience we have in working directly with the Jordanian Government and are proud to be working with a leading organization in their fields, and with a team of highly skilled and professional team members at EPC. We only hope that together we will foster further development for Jordan” he added.

It is worth mentioning that JATS is part of Royal Jordanian’s previous five business units that were carved for privatization in 2000. JATS offers safety, service and technical training for airline staff and pilots.