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The securities regulator has allowed Monarch Mart owned by cricketer Shakib Al Hasan and his associate company to acquire over 48 per cent stake in Al-Amin Chemical Industries Limited currently traded on the over-the-counter (OTC) market.
However, the Bangladesh Securities and Exchange Commission (BSEC) has tagged six conditions on the acquisition approved on Monday.
Monarch Mart and Monarch Express Limited owned by Shakib and five others will buy more than 48 per cent or 24.08 lakh shares, held by three sponsor directors in Al-Amin Chemical Industries in the market.
Of the 48 per cent stake, Monarch Mart will own 2.40 percent and Monarch Express 4.80 percent stake in Al-Amin Chemical, said Javeed A Matin, an executive at Monarch Mart Limited.
Aminul Islam Sikdar and Md Khairul will jointly control 14.40 per cent while AFM Rafiquzzaman will hold 10 per cent, Mashuk Alam 6 per cent, Md Humayun Kabir 2.40 per cent and Munshi Shofiuddin 8.175 per cent in Al-Amin Chemical.
The sellers are Al-Amin Chemical’s sponsor director Syed Ashiq (18.40 per cent), Syed Atika (15.975 per cent), and Tazakka Tanzim (13.80 per cent).
As per BSEC’s conditions, the sponsor's directors will collectively hold a minimum of 30 per cent shares of the total shares.
Al-Amin Chemical consists of a board of directors incorporating new shareholders who hold 2 per cent or more of the company's shares.
The company is not allowed to raise further capital until the reconstitution of the board of directors.
The proposed buyers will start the production of the company and regularize all pending issues, including banking operations, within three months after the completion of the takeover.
The proposed buyers or shareholders will inject fresh funds into the company to operationalise the activities of the company by maintaining a separate bank account and the issuance of capital against those injected funds shall be subject to the approval of the BSEC.
All the shares of the company will be dematerialized immediately after the execution of this transfer.
In September 2021, the stock market regulator abolished the OTC market and sent 41 OTC companies to SME platform and alternative trading board (ATB) of the country’s stock exchanges. Twenty-nine other OTC companies would be listed from the stock market.
In 2009, the BSEC launched the OTC market with companies delisted from the main trading boards of the Dhaka Stock Exchange and the Chittagong Stock Exchange.
Sixteen companies including Al-Amin Chemical Industries, which are not in operation, are to be shifted to the SME platform subject to compliance with some conditions, including submitting strategic plan regarding of fund raising, commencement of production activities and execution of necessary share transfer and compliance with the BSEC (Qualified Investor Offer by Small Capital Companies) Rules, 2018.
Al-Amin Chemical Industries' factory is located at BSCIC Industrial Estate in Faridpur.
