Al-Masri: We became a part of an integrated regional network beyond our borders
Al-Barak: My presence in Nablus today confirms the pride of Zain being in Palestine
Al-Jaber: We thank our shareholders, employees and customers and promise a bright future
 
In its meeting held in Prince Turki Bin Abdulaziz Theatre, An-Najah National University Nablus and via videoconference in Gaza Strip, the extraordinary General Assembly of Paltel (the Palestinian Telecommunications Company) approved the Board's recommendation regarding the deal with Mobile Telecommunications Company (Zain). Furthermore, actions necessary to implement such recommendation have been taken.

During the meeting, the company's shareholders approved the request of Zain Board of Directors to increase the company’s authorized capital by (207.081.081 shares) to reach (JD 338.706.081). In addition, the shareholders agreed to allocate shares resulting from such increase to Zain-Kuwait and the rest of Pella's shareholders. Therefore, Paltel will hold all shares in Pella, which holds in turn 100% of Zain Jordan shares.
The General Assembly also authorized the company's Board of Directors to prepare the prospectus, complete the necessary procedures to license issuance and take the necessary actions to complete the deal with Zain Kuwait. Unanimous approval was given to make all amendments required to the Bylaws by the Board.
Mr. Sabih Al-Masri, Chairman of the Board, disclosed the value per share of Paltel, which amounted to 7.4 dinars per share, and of Pella which amounted to 10.805 dinars per share, upon valuation for merger purposes.
The total value of the deal resulting from merging both companies amounted to about 3.5 billion dollars. Such value is in the interest of the Palestinian shareholder who becomes a shareholder in a company with high market value and more profitability opportunities.  
Mr. Sabih Al-Masri added that Paltel shareholders become today owners of regional shares after they owned shares in a national local company only. The operations of the merging company include mobile communication in Jordan, which provides the current Paltel shareholder with the opportunity to enjoy risk diversification and shares distribution to numerous transactions in two socially and geographically interrelated markets, positively affecting growth and expansion opportunities. Al-Masri indicated the advantages of such merger, most importantly; that Paltel becomes now a part of Zain international and network, which will provide Paltel with the privileges and additional services of Zain within the ”One Network”, as well as economic, regional, technical and high-tech advantages.

 

Al-Masri assured Paltel shareholders that the shares of the merging company are still traded in the Palestine Securities Exchange, which means a qualitative transition for this market. Shares listing in Amman Stock Exchange will be considered later according to the inputs and the desire to seize listing opportunities in markets parallel to the Palestinian market. He also stressed that any action will be driven by shareholder interests and confirmed stability and validity of merged company's shares.

On his part, Dr. Abdel Malek Al-Jaber praised the General Assembly's approval to the deal, indicating its several positive aspects and emphasizing the strengths of such partnership. One of the deal advantages is that the merging company shall enjoy major purchasing power and enormous human power and multi-talents, in addition to the incessant increase in the number of mobile line subscribers which exceeded 4 million subscribers and more than one million fixed line subscribers and Internet subscribers.
Dr. Al-Jaber reminded the audience that the studies conducted by experts and financial advisers on the deal confirmed in several areas that the merged company has significant opportunities for growth, which ensures positive financial flows. It is expected that the company's revenue will reach nearly one billion dollars annually and the net income will amount to approximately $300 million annually. This would enhance the profitability per share thanks to this partnership which will lead to integration of services operations and better rationalization of expenses, whether capital or operating. In addition, this partnership will make use of the communication expertise in the management of an integrated communications company in difficult markets with fierce competition and in the areas of mobile, fixed line and Internet.
Dr. Abdel Malek Al-Jaber added We are grateful for the confidence of the General Assembly to authorize us as a Board of Directors to complete the deal’s procedures. The upcoming months will witness immediate practical steps to translate this merger into action through activating strengths of the merged company, developing a work program to launch services of this partnership, including plans to launch Zain trademark, and giving subscribers all desired advantages and benefits of this merger. He also expressed his overwhelming happiness with this wedding of Paltel and Zain .

 

Mr. Chairman, Sabih Al-Masri, thanked all his colleagues for their confidence for seven consecutive years. At the end of the meeting, Dr. Al-Barak, Vice Chairman and CEO of Zain, and his accompanying delegation attended. Dr. Al-Barak communicated the mission of Zain’s Board of Directors and staff to Paltel shareholders. I came to Palestine to join you in this meeting and crown this partnership. We are in Zain proud of this partnership. Our visit to Palestine proves our great interest because we are proud of you as shareholders and hard workers to achieve this success.  We promise you that Zain will also be a strong contributor to the continued success and the development of the company for the benefit of shareholders in Palestine, Kuwait and Jordan. Also, Zain will support the economy of Palestine and the telecommunications sector based on the premise that economic liberalization must contribute to the attainment of political freedom and independence, Dr. Al-Barak said.

Dr. Al-Barak saluted steadfast Gaza rebelling against injustice, oppression and siege. He said I am very happy for being in this holy place and I feel like am in the heart of Kuwait. “Jerusalem, Nablus, Hebron, Ramallah, Gaza are in the heart of Kuwait. I came as the last and the least significant partner; but we are going to materialize our promises. In Zain, we do not have  minority shareholders, all are majority shareholders. These are our values in Zain. All shareholders have all rights and duties. This is a blessed company that faced significant challenges and accomplished great achievements. We want to connect subscribers with their Arab and international world in order to place Paltel at the heart of the economic map in the Arab world. Al-Barak stated that Zain is committed to Palestine and the subscribers in this country. As it always strives for the best, Zain promise shareholders with continuous benefits and considerable growth. In 2011, Zain seeks to be among the top top 10 telecommunication companies in the world at large. “Now, you are part of this objective and this strategy. We are serious in our quest and you are our best partner and best supporter. As for you Paltel staff, congratulation for your success and for this partnership. You will be our sons on the way towards progress to all what is new for you and for us, God willing, Dr. Al-Barak added.
Dr. Al-Barak has visited Paltel, Jawwal, Reach and the Group's Consolidated Services Center. He expressed his happiness with this visit, describing the Group's employees as heroes and thanking them for the wonderful welcome.