Rum Group for Transportation and Tourism and Jordan Commercial Bank sign an agreement to increase the Group's capital to JD 14 mn
Rum Group for Transportation and Tourism has signed an agreement with Jordan Commercial Bank to increase their capital to JD 14 m. This agreement is part of Rum Groupīs expansion project and it will be used to increase the groupīs investment exposure.
- (1888PressRelease) July 23, 2010 - Rum Group for Transportation and Tourism signed an agreement with Jordan Commercial Bank, whereby the Bank will provide underwriting services to the Group through its wide-spread network of branches, for the purpose of raising the Group's capital to JD 14 mn. Currently the Group stands at JD 8.7 mn, the JD 5.3 mn difference will be covered through private offering to existing shareholders. It is also expected that the Group will issue JD 5.0 worth of bonds. The proceeds from the offering and the bond will be used to increase the Group's investment exposure in the air transportation sector as well as Petra Airlines; one of the Group's new aviation ventures, which has recently announced its plan to operate two Airbus aircraft in Oct 2010, to serve inbound and outbound tourism to Jordan. It has also announced a strategic collaboration with one of the scheduled low cost carrier airlines in the region.
The Chairman and CEO of the Group; Mr. Riad Khashman explained that the reason underpinning the selection of Jordan Commercial Bank as partner in fulfilling the Group's goals and strategic plans, was due to the Bank's well known experience in the field of investment banking, reputation and reliability.
He also delineated that the Group is aiming at expanding its investments according to certain strategic plans, to exploit the untapped opportunities in the air transportation sector in Jordan and the region, especially at the presence of the open skies policy, which is expected to have positive impact on the tourism sector in the Kingdom. He also said that the Group is aiming to enhance the integration among the pool of services it provides to achieve higher growth rates and better revenues, also to solidify the Group's presence in the region.
His Excellency Mr. Jawad Al Hadeed the CEO and General Manager of Jordan Commercial Bank also expressed his contentment for selecting the Bank to be the financial advisor for the Group, which came consistent with the Bank's aspirations as well as its integrated pool of services that the Bank provides to its retail and corporate clients. His Excellency also expressed his confidence in the successful plans of the Group and its expansionary goals and investments.
Early this year the Extraordinary General Assembly meeting of the Group has approved the distribution of 700,000 in share dividend to its shareholders, it has also approved increasing the capital by JD 5.3 mn through private offering to existing shareholders at JD 1.0 per share and with zero premium, and the bond issuance of JD 5.0 mn.
About Rum Group:
Rum Group is now considered upon the top 3 tourism companies in Jordan and represents a dynamic collective force committed to the promotion of tourism and transportation in an emerging destination. In 2006, the Group became listed on the Amman Stock Exchange under (RUMM), with a paid up capital of JD 6.0 mn, by end of 2010 the Group will stand at a paid up capital of JD 14.0 mn.
Rum Group realizes global vision though providing a profitable model of integrated tourism services in Jordan and the region to ensure unparalleled customer satisfaction and investment rewards through constant development of services, new product lines and quality human resources.
Media Inquiries:
Mr. Mohammad Abu Al Adel.
P.O.Box 921513 Amman
11192 Jordan.
Tel: +962 6 5697434
Fax: +962 6 5697437
mohdabuladel ( @ ) rumgroup dot com.jo.
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