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ADN Telecom has agreed to acquire a majority stake in fire security service providing company SOS Developments Ltd.
The company’s board has approved the draft share transfer agreement to acquire a 60% holding in SOS Developments for Tk 2 crore subject to completion of all regulatory formalities, said the company in a filing with the Dhaka Stock Exchange on Tuesday.
The tenure of the agreement is 10 years with expected revenue of over Tk 50 crore approximately per year, it said. ADN Telecom will provide the investing amount from its source of funds.
“This is the first fire technology investment we made,” ADN Telecom Company Secretary Monir Hossain told the Business Post.
“If there is a fire somewhere, the fire service is informed. Technological advances are being made to further enhance the public’s communication capacity with the fire service. We will work on technical issues through SOS Development.”
“The investment will guarantee internet access to the fire service provider,” said the company secretary.
On Tuesday, ADN share prices gained 1.81 per cent to Tk 67.5 on the DSE.
SOS Developments Limited has entered with “Fire Service Welfare Trust” a Joint Venture Agreement for providing fire security solution services with an innovative device with its systems called “Instant Response System” (IRS), as a fire guard.
SOS Developments is a private limited company and its nature of business is providing fire security solution services.
ADN Telecom made its stock market debut in 2019 and is an internet service, multiprotocol label switching, international private leased circuit, and internet protocol telephony service provider.
From July 2021 through March 22, the company EPS was Tk 1.77, up from Tk 1.76 in the same period a year earlier.
ADN Telecom’s total revenue stood at Tk 82.77 crore and net profit Tk 11.41 crore during the period.
The company’s paid-up capital is Tk 64 crore and authorised capital Tk 200 crore, while the total number of securities is 6.46 crore.
The sponsor-directors own 51.56 per cent stake, institutional investors 16.69 per cent, foreign investors 1.99 per cent and the general public 29.76 per cent as of May 31, 2022, the DSE data shows.
