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ADN Telecom to join Shohoz by acquiring 10% stake

Staff Correspondent
08 Jun 2023 00:00:00 | Update: 08 Jun 2023 00:16:56
ADN Telecom to join Shohoz by acquiring 10% stake

ADN Telecom Ltd decided to buy a 10 per cent stake in Shohoz Limited, a leading online ticketing platform, by investing Tk 12 crore in the company.

The board of directors of the listed IT-sector firm finalised to invest in Shohoz yesterday evening, subject to regulatory approvals.

As per an agreement between the two companies, ADN Telecom, the country’s leading ISP, MPLS, IPLC, and IP Telephony service provider, will share 10 per cent of the commercial profit or loss of Shohoz, sources at ADN Telecom confirmed The Business Post.

Azim Hossain, head of brand and communication officer at ADN Telecom told The Business Post, “Shohoz will continue its business activities as it is doing. With our investment, the startup’s (Shohoz) business and service delivery areas will be wider.”

“If necessary, we will invest more in the company for its business expansion after monitoring relevant things properly,” he added.

“The partnership between ADN Telecom and Shohoz Limited has the potential to bring about significant advancements in the digital landscape of Bangladesh by improving efficiency, accessibility, and the overall quality of life citizens.”

“With this partnership, ADN Telecom and Shohoz Limited can work together to develop and deploy innovative solutions that contribute to the country’s Smart Bangladesh vision,” Azim Hossain continued.

ADN Telecom is a leading telecommunications service provider in Bangladesh, offering various connectivity solutions, including internet services, data center services, and network infrastructure.

Shohoz Limited, on the other hand, is a prominent digital service provider, well-known for its ridesharing, ticketing, and other on-demand services.

In September 2019, local digital service provider Shohoz was featured on the list of most well-funded startups in Asia-Pacific in the US-based research organisation CB Insight’s report titled Startup Continent.

Just before investing in Shohoz, the board of directors of ADN Telecom announced last month to construct a 13-storyed commercial building and a data center setup in the capital’s Badda area.

The estimated cost of the project will be Tk 70 crore, and the capital would be sourced through a syndicate loan from banks, the company said.

According to the decision, the building will have a total approximate floor space of 1,16,400 square feet. Of the 13-storyed building with three basements, the first and second floors will be used for the data center.

Earlier, to diversify its business, ADN Telecom announced in July 2022 that it would acquire a 60 per cent stake by spending Tk 2 crore in SOS Developments Limited, a private limited company providing fire safety services.

The publicly listed ADN Telecom Limited posted a handsome year-on-year profit growth in the third quarter (January-March) of the current fiscal year due to the expansion of the overall business and new products and services.

Its profits surged in the January-March quarter of the fiscal year 2022–23 due to the launch of new services, it stated in its financial statement.

The company’s consolidated net profit stood at Tk 6.59 crore in Q3 of the current fiscal, while its consolidated earnings per share (EPS) were Tk 1.02.

Its consolidated earnings per share were Tk 3.03 for the period of July to March of FY23.

The listed IT firm’s consolidated net asset value per share was Tk 29.62 as on March 31 this year.

Sponsors-directors owned a 44.91 per cent stake in the company, while institutional investors held 18.74 per cent, foreign investors 1.99 per cent, and general investors 34.36 per cent till May 2023.

ADN Telecom, one of ADN Group’s major sister concerns, currently provides IT and telecommunications services in the country.

It raised Tk 57 crore through an initial public offering (IPO) back in 2019.

AND Telecom shares closed at Tk 140.10 per share on the Dhaka Stock Exchange’s (DSE) trading floor on Wednesday.