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What is Solidere?
The Lebanese Company for the Development and Reconstruction of Beirut Central District, SOLIDERE, is an association of property rights holders and investors, whose contribution make possible the financing and execution of the required infrastructure allowing the project to move forward.

A joint-stock corporation established formally on May 5, 1994 following a statutory meeting of its shareholders, SOLIDERE's share capital is made up of common stock of two types totaling $1.82 billion:

1) TYPE (A) SHARES:
Issued to property owners in the BCD and individuals or corporations with rights therein, against their real estate property contributions. Following initial evaluations by appraisal committees, a Higher Appraisal Committee placed the final figure on all private real estate value in the BCD at US $1.17 billion.
Distribution of (A) shares
The proportionate distribution of type (A) shares to former property rights holders in the BCD takes place through distribution Committees appointed by the State.
2) TYPE (B) SHARES:
Issued to investors against their cash subscriptions in the amount of $650 million.

SUBSCRIPTION AND TRADE
A three-month subscription offer for 6.5 million shares, at par value of US$100, came to a close on January 10, 1994 and although restricted to four categories of investors, the share offering was oversubscribed by 142 percent.
 
ELIGIBLE SUBSCRIBERS WERE SUBJECT TO THE FOLLOWING PRIORITIES:

A- Right holders (proprietors, tenants, lease holders) in the BCD,consisting of people of varied nationalities

B- Lebanese nationals and purely Lebanese companies

C- The Lebanese state, Lebanese public institutions and the Beirut Municipality

D- Persons of Lebanese origin, public and semi-public Arab institutions and nationals of Arab countries.

A number of characteristics distinguish SOLIDERE shares from those of other corporations formed under the Lebanese Code of Commerce:

Because of the international scale of the project, it was considered desirable to denominate the shares of the Company in U.S. dollars.

No individual or corporation can own, directly or indirectly, more than 10 percent of the total capital of the Company.

Dividends paid to shareholders are exempt from income tax in the first 10 years following the date of incorporation of the Company. Capital gains arising from the exchange of shares are also exempt. In addition, SOLIDERE is exempt from income tax for a period of 10 years from the date of its incorporation.

SECONDARY MARKET

On June 23, 1994, a secondary market allowing for trade in SOLIDERE shares became operational. This market is under the supervision of the Bank of Lebanon and organized by the Societe Financiere du Liban, an organization comprising 46 Lebanese banks. Brokers representing 32 banks and financial institutions participate in the trading.

This market makes possible trading in SOLIDERE shares and provides other Lebanese companies with the opportunity to offer shares for trade and to enter the market anew.

 

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Beirut Central District | Current World Bank projects in Lebanon | Electricity Rehabilitation


WHAT IS SOLIDERE? THE ROLE OF THE COMPANY THE PROJECT THE MASTER PLAN
THE PROGRAM CURRENT DEVELOPMENT ANTICIPATED PHASING ARCHEOLOGY
THE SOUKS


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