The government has asked for expediting the process of takeover of a portion of foreign stakes in Karnaphuli Fertiliser Company Limited (KAFCO) and offloading some shares of the multinational on the capital market.
Sources have said the instruction was issued for industries ministry at a recent meeting held at the ministry of finance to review the progress in implementation and future course of action regarding direct listing on the capital market of state-owned profitable companies with strong fundamentals, including multinational companies or MNCs.
Located in Chittagong, the KAFCO factory is a 100-percent export-oriented international joint-venture company. The company produces anhydrous ammonia (nitrogen fertiliser) and granular urea fertiliser.
KAFCO was established in Bangladesh with the shareholding and support of the governments and private sectors of Bangladesh, Japan, Denmark and the Netherlands. It sells products to many countries across the world.
The Ministry of Industries and Bangladesh Chemical Industries Corporation (BCIC) hold share of KAFCO on behalf of the government of Bangladesh. Also, the Japan International Cooperation Agency (JICA), Marubeni Corporation, and Chiyoda Corporation on behalf of KAFCO Japan Investment Company Limited (KAFCO Japan) hold the shares for KAFCO Japan Investment Company Limited (KAFCO Japan).
Moreover, firms like Subcontinent Ammonia Investment Company ApS (SAICA), Haldor Topsoe International A/S (HTAS Int.) of Denmark, Investment Fund for Developing Countries (IFU), Denmark, and Stamicarbon bv (STAC), The Netherlands hold KAFCO shares.
Sources say at the finance ministry's meeting the Ministry of Industries was asked to take necessary action to finalise the process of taking over the foreign investor's share at KAFCO.
According to officials concerned a shareholder from Denmark had expressed interest in handover of 8.0 per cent of its shares to the government of Bangladesh. Later, the KAFCO management started process for appointing asset-valuation firm for the same. "The government wants to check whether the share price demanded by Denmark's company is feasible to acquire or not," a BCIC official told The Financial Express.
After getting the asset-valuation report, the government will decide whether to buy the stake or not, he said.
He said the government instructed KAFCO to offload at least 5.0-percent shares on the stock market as the company is making profit and will lure investments.
syful-islam@outlook.com
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