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2010-01-05
Ramallah – According to its plan to restructure the investments, and in its attempt to focus its investments in specialized companies, Palestine Development and Investment Company (PADICO) sold its shares in each of the Golden Wheat Mills Company (GMC) and the National Carton Industry (NCI) to Palestine Industrial Investment Company (PIIC) in the biggest investment exchange transaction of PADICO"s group within the restructuring plan, which its implementation had began last year and suppose to be completed in the first quarter of 2010. The transaction also included the sale of the contribution of Palestine Industrial Estate Development (PIADCO) in the Golden Wheat Mills Company (GMC) to Palestine Industrial Investment (PIIC). In this process, PADICO has transferred its direct control of most of its industrial investments to specialized industrial company. And this deal came after the decision of PADICO"s board of directors of restructuring the company"s investment in the industrial sector, and joining PADICO"s investments in this sector to be managed by Palestine Industrial Investment Company (PIIC) to form a powerful investment arm for PADICO in the industrial sector that oversees and manages investments of the group with one vision and coherent strategy. Through the exchange process, PADICO sold 1.4 million shares of its shares in Golden Wheat Mills Company, and approximately 1.2 million shares of its stake in National Carton Industry to Palestine Industrial Investment Company, in addition to the sale of PIADCO"s stake in GMC of 1.32 million shares, thus PIIC becomes an owner for more than %18of the capital of GMC and %24 of the capital of NCI. The Chairman of PADICO Mr.Muneeb Rashid Al Masri praised for these transactions, considering it as a strategic and an important step in the process of restructuring and strengthening PADICO"s investments, which enhances the operational activities. Al-Masri added, "The first step towards implementation of this plan was the approval of the Board on the restructuring of Palestine Tourism Investment Company the owner of the Intercontinental Hotel Bethlehem, so the company will go forward into increase capital in two phases to reach JD 20 million, which will enable the company to repay its loans, and enhance the company"s working capital to move forward with its future plans. the first stage of the process have been successfully finished by increasing the capital at the end of last year"s through an agreement with the Palestinian Investment Fund and Arab Bank and other strategic partners, and the capital was increased by about 5.3 million shares, which enabled the company to redeem a part of the accumulated losses amounting to approximately JD 24 million. The company is going forward at the end of this month to convene an extraordinary general assembly, to approve the second phase of raising the company"s capital by 14.7 million shares / JD, which will enable the company to pay the company"s long-term loan for the European Investment Bank, which was a key partner during the previous phase, which we hope to continue as a partner and a key supporter for PADICO group companies and the Palestinian economy in general". Regarding the merger of PADICO"s working companies in real estate and tourism sector, Al-Masri added that PADICO completed a large part of the preparations for the merger which is expected to be completed in the first quarter of this year, where there are continuous coordination with all related parties such as stakeholders, Ministry of National Economy , The Capital Market Authority and regulators, assuring that such steps will leave a positive impact on PADICO, the financial market and the Palestinian economy . He added also that the merger process will be implemented in three planned phases, which include the merger of investments in16 existing companies, to constitute one holding company with a capital of approximately $ 180 million, to be the investment arm of PADICO in both and real estate and tourism sectors, that works in the areas of land development, real estate- property management and construction. He also pointed that there are currently working to develop a comprehensive plan for the company, to ensure a strong starting in the coming period. Al Masri added, that last year PADICO had purchased the full stake of Global Investment House (GLOBAL) in Palestine Real Estate Company (PRICO) that amounted 16 million shares with a total value of $18 million, in addition to buy GLOBAL"s stake in Palestine Securities Exchange (PSE) that is %10 of its capital with a total value of $5 million. From his side, PADICO"s CEO Mr. Samir Hleileh said that purchase and exchange decisions refers to the huge success that PIIC accomplished in managing Palestine Poultry Company (AZIZA) which had reflected on the company"s profitability positively last year. As for National Carton Industry (NCI), it witnessed several change last year which had been characterized by adopting expansion and modernization plans for the development of its products and improving its performance, where the company had bought a new production line to produce packages for agricultural products, and stopped the company"s losses, and it is expected to gain profits this year. As for Golden Wheat Mills (GMC), it had realized profits during the last year and it is expected to earn more profits within the current year.
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