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PSE in a week... Waiting for more details about the deal of PALTEL and ZAIN

2009-05-24

Jafar Sadaqa wrote:
Finally, the agreement that had been waited for long time of ZAIN entry as strategic partner in the Palestinian telecommunications company, marks a radical change in the restructuring of the telecommunications sector in the Palestinian territories, and is expected to have far-reaching effects on the entire Palestinian economy, particularly in terms of attracting foreign investment.
The partnership has been through PALTEL possessing of %100 of the shares of ZAIN Jordan, as opposed to ownership of ZAIN of %56.53 of PALTEL shares.
And the integration of ZAIN Jordan with PALTEL, there will be a new entity which has ZAIN will own %58.57 compared with %41.43 to the shareholders of the Palestinian telecommunications company, the new entity will include business operations in the areas of communications in both Jordan and Palestine.
According to the disclosure that was received by the PSE, the partnership between PALTEL and ZAIN will keep the staff working in both Jordan and Palestine, and respects the privacy of each of the markets, taking advantage of the expertise of PALTEL in mobile, fixed, internet services, management of call centers and provide information services, as well as benefit from the experience of global ZAIN including the Palestinian market to benefit from all the services added to ZAIN.
And by implementing the merger that is expected to be completed before the end of this year, ZAIN Jordan will preserve its trade name, and the name of PALTEL will be changed to ZAIN Palestine, and will become part of a global set, where ZAIN services in 24 countries including 18 countries that are connected to ZAIN network and consolidated subscribers base exceeding 63 million, of whom 2.35 million subscribers in Jordan.
And the preliminary agreement between PALTEL and ZAIN will be sequenced by signing an agreement with the Palestinian National Authority regarding the transaction, which guarantees the rights of all parties, particularly with regard to fixed line services and communications infrastructure to licensed service providers in Palestine.
There will be a General extraordinary meeting of PALTEL within two weeks to discuss the deal and approve it, and then start with the implementation of the integration process.