Social security fund acquires JD74m additional stake in Arab Potash Company

AMMAN — The Social Security Investment Fund (SSIF) has enhanced its stake in the Arab Potash Company (APC) through a deal to acquire all of the Islamic Development Bank’s (Jeddah) shares in the blue chip, an SSIF statement said Tuesday. 

The agreement was signed on November 8, the fund said, adding that through the deal, SSIF will be raising its ownership of APC to 10.37 per cent, equivalent to 8,643,000 shares. 

The deal will be executed at a share price of JD17.35 per share.  

SSIF Executive Chairperson Suhair Al-Ali said the deal is part of ongoing efforts to identify viable investment opportunities that would play a role in preserving the value of the fund’s assets, increasing revenues and diversifying risks. 

Moreover, she said, the deal is in line with the fund’s investment policy and “contributes to strengthening local investments in strategic national companies that support the national economy”.

Al-Ali stressed that this acquisition deal had been studied carefully, taking into consideration current market conditions, global potash prices, APC future expansion plans, as well as the company’s performance during the first half of 2016 and future projections.

A total of 13 accredited brokers at the Amman Stock Exchange will execute the deal on behalf of SSIF to give them a fair chance to equitably benefit from this vital deal, Al-Ali added.

The SSIF chief stressed on the importance of increasing the fund’s contribution to economic development through entering partnerships between the public and private sectors to implement feasible national projects and secure the necessary financing. 

Al-Ali announced that the Social Security Investment Board has recently approved the establishment of a Financial Leasing Company, fully owned by the fund. 

The new venture, named “Daman Financial Leasing Company”, will serve as a new vehicle to undertake financing for viable and feasible national projects designed to meet local community development objectives, generate jobs and stimulate growth, according to the statement. 

The SSIF is in charge of managing the assets of the Social Security Corporation, which exceeded JD8 billion in September 2016.

The fund also manages a securities portfolio worth JD1.78 billion, constituting 10.6 per cent of the ASE market capitalisation.