AMMAN - Amlak Finance's board of directors recommended to the general assembly on Wednesday a reduction in the company's capital from JD60 million to JD1 million.
Board Chairman Imad Qudah said the cutback reflects the "turmoil in the real estate and financial markets."
He indicated that if the general assembly approves the recommendation at an extraordinary session on March 5, about 2,000 shareholders will receive in cash over 98 per cent of their capital in the company at book value.
The remaining amount will be used to run the company, Qudah remarked.
He told The Jordan Times in a telephone interview Wednesday that the company's money are deposited in banks noting that profit amounted to JD1.3 million in 2008.
"After six month, the board of directors will reconsider the decision and if real estate and financial markets stabilise, then the company will consider increasing its capital," the chairman said.
Amlak, whose main activity is to invest in real estate and financial investments in accordance with Islamic sharia, was listed at the Amman Stock Exchange almost three months ago.
By Mohammad Ghazal
© Jordan Times 2009
