Jordinvest successfully completes capital raise of Siniora Food Industries Ltd. through strategic partners
Amman, Jordan (April 2007) – Jordan Investment Trust PLC (Jordinvest) successfully completed the Siniora Food Industries capital increase. In its capacity as Siniora’s financial advisor and lead manager and arranger, Jordinvest supervised and completed the capital raise of Siniora by JD 4.5 million by allocating that increase to strategic partners after completing a merger transaction of Siniora’s companies
The capital raise was accomplished through strategic partners; EuroMena Investment Fund, which is a subsidiary of Capital Trust International, acquired 50% of the new capital ,while Jordinvest along with the other investors acquired the remaining 50%.
A financial advisory agreement was signed earlier between Jordinvest and Siniora Food Industries. The agreement was put into action last year, and allowed Jordinvest to conduct a due diligence on Siniora’s historical financial statements, as well as a preparing the company’s future financial projections to reach to a fair valuation of both Siniora and its subsidiaries. Jordinvest also prepared a capital incrase memorandum in accordance with international standards and specifications, and in accordance with the laws and regulations of the Ministry of Industry and Trade. This memorandum was presented to potential strategic investors, and finally Jordinvest acted as the lead manager and arranger supervising the allocation of the new capital among the new strategic partners.
In light of the progress made since the signing of this agreement, Chairman and CEO of Jordinvest Mr. Ahmad Tantash said, “We are extremely happy with what we have achieved so far, for throughout our fruitful partnership with Siniora Food Industries, we were able to accomplish the goals we set out to achieve. Our partnership with Siniora Food Industries served to enrich our portfolio of clients, and we are proud to be working alongside an entity that enjoys such a positive reputation both locally and regionally. This positive reputation has allowed it to attract powerful investors from Jordan and abroad”.
Mr. Tantash added, “such results show that our clients’ and our shareholders’ trust in us is well founded. The financial, consultancy, and investment services that we as Jordinvest provide are geared towards increasing the productivity and increasing the capital of our clients while maintaining the high level of quality products and services that they provide.”
The Chairman of the EuroMena from his end said, “We are an entity that constantly searches for partnerships that enable us to solidify the position of firms in local , regional and international arenas, and through our input we strive to ensure that international standards of excellence are implemented, and that the rights of investors are reserved”
From his end Mr. Majdi Sharif, CEO of Siniora Food Industries, added, “We at Siniora Food Industries have implemented comprehensive marketing strategies that will help bring us closer to achieving our goal for further expansion. We ultimately want to reach regional markets, and we feel that we have the means to do so. All our operations are run in accordance with international standards of excellence, for we work to respond to the demands of our clients, and we do so by ensuring that we deploy top quality raw materials in our production. I am proud to say that all our finished products comply with internationally accepted health standards. We have so far achieved notable levels of recognition in all the regional markets we operate in, and we are now looking to expand our investments and operations. “
Mr. Sharif further added that the management of Siniora Food Industries holds Jordinvest with high regard. “Jordinvest’s devoted team is always generating new innovative and creative approaches for increasing their clients’ shares in the market, and with sound advice and careful effective execution, they have managed to successfully raise our capital value. The new capital has been allocated to expand the Siniora factory in Jordan, and to add two new production lines With these changes we will be able to introduce more than to 70 new meat products to the market” he said.
Prior to the capital increase, the majority ownership of Siniora Food was held by the Arab Palestinian Investment Company (APIC), amounting to 88.34%. After the capital raise, APIC still holds the majority ownership of 59.64%. EuroMena, meanwhile, owns 16.34%, while Jordinvest and the other strategic parnter own 16.34%.
Siniora Food Industries is a Jordanian-based company established with the principle aim of production, distribution, and sale of meat and meat products, in addition to the import of raw materials used in the production and export meat products. The company owns 88.66% of Al Haya Food Industries, a Palestinian-based company in the meat production sector. Siniora’s high standards of operations had granted it several certificates of distinction including the ISO 9001 certification for distinction, and the HACCP, the ISO 22000 certificate for distinction for its operations in Palestine.