Press Releases

16 June 2007

Salam International Limited (SIIL) Board Meeting

Board of Directors held its meeting on Sunday 17/06/2007 to discuss the board's agenda and took appropriate decisions as follow:

First: Purchase Salam Bounian Shares:
The Board approved purchasing of 10 million shares of sister company Salam Bounian for Development (SBD). SIIL offered the purchase at QR 12 per share, of whatever is offered by founders shareholders, who are willing to sell part or all of their shares, according to the price and conditions stated in SIIL offer. SIIL will purchase said shares on several batches till 31/12/2007, on transparent & announced basis.

The Board approved terms & conditions of SIIL’s offer of purchasing 10 million shares of SBD. SIIL will notify SBD of its willingness to increase its participation in SBD up to 50% of SBD’s capital in several phases.

SIIL will request SBD to inform all its shareholders of the offer and term of the option to sell.

Conditions of SIIL’s offer:

  1. SIIL will purchase SBD’s shares on several batches till 31/12/2007 at its own discretion.
  2. SIIL offer QR 12 per share.
  3. SIIL will pre announce the number of shares and the offered price for every batch.
  4. SIIL is committed to purchase every batch on the same basis and conditions from all shareholders without any exception or distinction.
  5. SIIL reserves its right to increase or decrease the number of shares intends to purchase at its own discretion.
  6. SIIL reserves its right to increase or decrease the price per share from batch to batch at its own discretion.
  7. All SIIL-BOD members and Executive Directors are not allowed to purchase SBD’s shares up to 31/12/2007. However, sale of shares is subject to SBD applicable rules.
  8. SIIL as a public shareholding company, all its projects and deals are subjected to principles of transparency & disclosure, equal opportunities and approval of competent authorities, therefore the company may revoke this decision if requested by competent authorities.

Second: Participation in establishing Solidere International Company (SI):
The board approved the participation of SIIL, jointly with sister company SBD, in the establishment of Solidere International Company (SI) in the amount equal to QR 22 m. SI initially was established by Lebanese Company for the Development and Reconstruction of Beirut Central District. SI specializes in real estate development, outside Lebanon, in Gulf & Middle East Region and Europe.
Although, it is still in establishing stage, SI succeeded to identify and select a long list of unique real estate development projects. SI managed to sign agreements and MOUs to develop tourism & residential projects in different countries in the Gulf & Middle East Region.

Third: Mortgage of project’s land:
Based on the BOT agreement signed with SBD, the Board approved to mortgage the land allocated to the “Gate” project as collateral of Sharia compliance financing (Sukuk). Provided that SBD second mortgage whole project in favor of SIIL.

Furthermore, the board reviewed progress reports on current projects.

It is worth noting, that some of the above mentioned projects are primarily approved. The company may decide not to continue some of these projects depending on future developments in order to protect company’s and shareholder’s interests. The company emphasizes that this should be taken into consideration by both shareholders and interested investors.