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Palestinian stocks under the rapture of PALTEL-ZAIN deal

2009-02-01

Finally the strategic partnership deal in Palestine Telecommunications Company PALTEL had exited from listing, and became certain by now that the partner company is ZAIN Mobile Telecommunications, where the negotiations had reached to final stages that had been culminated with the ratification of the "PALTEL"s board of directors on the deal"s framework by authorizing the board chairman Mr.Sabeih Al Masri to carry out the negotiations. It hadn’t been specified the quota of the shares yet awaiting for the results of ZAIN Jordan"s assets evaluation, that is scheduled to be completed by international audit company and submit its report to the parties on 9 February. For the purposes of entering the ZAIN as strategic partner, the Board of Directors will recommend to the irregular general assembly to raise the company"s capital by new offering which"s value and volume will be determined after the completion of the assessment ZAIN Jordan. Palestine Securities Exchange halted the share of PALTEL from trading on Wednesday, based on the request of the Board of Directors, as the company"s share had been halted from trading in Abu Dhabi Stock Exchange in the following day, until convening the irregular general assembly for the verification of the transaction and the capital increase. Palestine is a part of a regional network without roaming charges, and by completing the transaction, JAWWAL that is follower to PALTEL will be a part of ZAIN, which in its turn covers 5 countries in the Middle East, namely: Saudi Arabia, Jordan, Iraq, Bahrain and Sudan, and 6 other countries in Africa, are: Kenya, Tanzania, Uganda and the Democratic Republic of the Congo, Congo and Gabon, as it seeks to join 6 other countries to the unified network in the Middle East and Africa, including Kuwait, Lebanon and Ghana. In total ZAIN covers 54 million subscribers in 16 countries with international roaming charges. The news of the deal had been whipped widely among the investors and even the ordinary street since the ending of last year, until it had been confirmed by the Board of Directors at a meeting held in the Jordanian capital in this January 27. During this period, the shares PALTEL and PADICO witnessed intensive bid volumes by investors, which led the two shares to rise since the beginning of the year by %17.81 and %16.53 respectively, which constitute the lifting arm for Al-Quds index in the PSE which had gained by 68.56 or by %15.52 washing by that %96 from its losses in 2008.