The state-run Investment Corporation of Bangladesh (ICB) is mulling taking over management of the ICB Islamic Bank Ltd through acquiring majority shares of the bank, sources said.
In this regard, the ICB is in the process of buying 52.76 per cent shares of the bank held by Switzerland-based ICB Financial Group Holdings AG, a company listed on the London Stock Exchange.
"In principle, we have decided to buy the shares of the bank. After necessary due diligence through an independent auditor, we will take the final decision in this connection," ICB Chairman Dr S M Mahfuzur Rahman told the FE Friday.
Sources said the ICB has agreed to buy each share of the bank at Tk 8.0 against the face value of Tk 10. On Thursday last, per share of the bank in the Dhaka Stock Exchange was traded at Tk 6.30.
At a recent meeting, the board of directors of the ICB has empowered Managing Director Fayekuzzaman to sign a Memorandum of Understanding (MoU) with the seller.
Sources said the central bank has agreed to offer all kinds of cooperation to the ICB to acquire the shares of the bank. The Orion Capital Ltd, a potential strategic partner for the acquisition, has sent a draft MoU to the ICB.
Sources said the ICB Financial Group Holdings AG, a sponsor shareholder of the bank, in its MoU said the shares will be sold on 'as-is-where-is' basis. Selling price of the shares will remain fixed at Tk 8.0 which should not be changed after due diligence.
It also wanted payment of the value of 10 per cent shares it was disposing of before due diligence and the rest 90 per cent be paid before the signing of the agreement as proof of fund.
Sources said the ICB board decided that an independent auditor will audit the bank's assets and liabilities, income
and expenditure, and profit and loss which the board will take into consideration before taking the final decision of acquisition of the bank.
ICB Chairman Mr Rahman told the FE that there were many formalities of taking over a bank which would start soon.
He said the ICB Financial Group Holdings AG approached 7/8 companies for selling their shares in the bank, but many of them did not come forward.
"In Bangladesh, most of the banks are doing well. It's not very tough running a bank if the management is good. The board's sentiment behind taking decision to acquire the bank was to do something for the shareholders since the bank was not doing well," Mr Rahman said.
The sponsors of the bank hold 59.78 per cent, institutes 17.52 per cent, and public 22.7 per cent shares of the bank.
ICB mulling ICB Islamic Bank takeover
Syful Islam | Published: November 30, 2013 00:00:00 | Updated: November 30, 2024 06:01:00
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