An agreement providing for the sale and transfer of all assets of the Palestine Potash Company outside the borders of the Hashemite Kingdom of Jordan to a newly-formed Israeli corporation. “Dead Sea Works, Ltd.,” has been reached after discussions between representatives of the Israel Government and the Palestine Potash Company, it was announced today by the Israel legation here.
The agreement, which will be formally signed in Israel in two or three weeks, is subject both to the ratification of the stockholders of the Potash company, and the consent of the British Government’s Ministry of the Treasury. It provides for the payment of 1,220,000 Israeli pounds in class “B” founder shares to the Palestine Potash Company as well as 390,000 Israeli pounds in debenture stock of the new Israeli corporation. The class “B” founder shares will entitle the Palestine Potash Company to 16 percent of the voting power in the new corporation.
Fifty-one percent of the stock in the Israeli corporation will be reserved for the Israel Government, according to the announcement. The remaining 33 percent of the voting stock in the corporation will be open to public subscription. The Dead Sea Works, Ltd., will be granted permission from the Israel Government to extract salt and minerals from all brine in the Dead Sea within Israel’s territory.
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