ACI ends joint venture with Dabur

Bangladeshi conglomerate Advanced Chemical Industries Ltd (ACI) has announced termination of its joint venture deal with Dabur International Ltd after nearly two decades of partnership.

The board has approved the termination of the joint venture contract between Dabur International, formerly known as Redrock Ltd, which was signed on July 5, 2003, according to a filing made at the Dhaka Stock Exchange on Thursday.

ACI would sell its own 24 per cent stake in Asian Consumer Care Ltd, representing Tk 60 crore. The board has decided that the amount will be used for business expansion.

The filing in the DSE website read, “The company [ACI] has informed that the Board of Directors of the company has approved the Termination of joint venture agreement dated 5 July 2003 with Dabur International Ltd formerly known as Redrock Ltd.

“ACI Ltd will sell its entire shareholding 24 per cent in the share capital of Asian Consumer Care Ltd 8,480,187 fully paid up ordinary shares of Tk 10 each at a consideration of Tk 60 crore, for alignment of the future expansion of the company (ACI).”

The same day, ACI also announced that its board of director has approved the draft scheme of Arrangement for Demerger and Merger, for the demerger of plastics business undertaking from Premiaflex Plastics Limited (PPL) into ACI Premio Plastics Ltd (a subsidiary of PPL).

This decision came for the fulfillment of the merger of the remaining business undertakings, including the packaging business of PPL, with ACI Ltd under the provisions of Section 228 and 229 of the Companies Act 1994, subject to the consent of shareholders and creditors of the respective companies and approval from the Honorable High Court Division of the Supreme Court of Bangladesh.

For the benefit of the consumer and to establish a link between the company and the backward linkage operation of Premiaflex Plastics Limited, ACI develops a distinctive brand identity for ACI Premio Plastics Ltd, said the filing in the DSE website. 

ACI Ltd posted a 47 per cent increase in its earnings in the third quarter that ended on March 31, 2022, compared to the same quarter last year. As of March 31, 2022, the company’s net asset value (NAV) per share stood at Tk 140.61.

The company had also consolidated earnings per share (EPS) of Tk 5.95 in the first nine months of FY22 (July 21 – March 22). Gross Profit stood Tk 1,855 crore and Profit after Tax Tk 74.82 crore in the same period.

After the disclosure, ACI Share price rose 0.32 per cent at the end of the trade, hitting Tk 279.10.