Akij Jute Mills Limited has signed a Share Purchase Agreement (SPA) with Singapore-based Robin Group to acquire 100 per cent share of two operating subsidiaries in Malaysia.
It is the maiden development in Bangladesh's corporate history to achieve the distinction for attracting a Bangladeshi company's investment in a foreign country, industry sources told The FE Wednesday.
Akij Jute Mills Limited got the approval for Equity Investment of USD 20 million from their Export Retention Quota (ERQ) Account on October 25, 2017 after long due diligence conducted by Bangladesh Bank.
Mr. Sk. Bashir Uddin, Managing Director and Mr. Shamsuddin Ahmed, FCA, Chief Financial Officer of Akij Group and high officials of the Robin Group were present at agreement signing function.
The Robin Group has exports in 60 countries from Malaysia where Akij Group can diversify its exports by this acquisition in more countries by using the same export channels, which will reduce the cost and will enhance our export to achieve the national goal.
Akij Group was established in 1940 and as on today it has 20 active companies.
Akij Group is the highest VAT/ tax contributor to the national exchequer amongst the local companies in Bangladesh.
Green Delta Capital Limited, one of the leading investment banks in Bangladesh acted as the Independent Valuer and Advisor to the transaction for such a milestone M&A deal.
GDCL also worked as sole Mandated Lead Arranger and Advisor for attaining Foreign Equity Investment Approval from Bangladesh Bank, raising debt financing from foreign market and rendering advisory services to structure the deal as a whole.
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