Beximco-led consortium rules out new Singer bid

Jasim Uddin Haroon A Bexmco-led Bangladeshi consortium Saturday ruled out making a fresh bid to acquire Singer Bangladesh from its Netherlands-based majority stake holder. Salman F Rahman, the vice-chairman of Beximco, said there is "no chance" the consortium, which includes Chittagong-based PHP, Dhaka-based Unique and Ascent Groups, would buy out the home appliance company. "There is no possibility of renewal of the bid immediately," Rahman told the FE, after rumour swirled through the city that the consortium, which had made a bid for Singer in November last year, was making a last-ditch attempt. Last year a four-company consortium led by Beximco signed an expression of interest (EOI) to purchase 55 per cent stake of the firm owned by Singer Bhold BV of the Netherlands for around Tk 9.45 billion. Salman said the EOI had been terminated as Singer's owners failed to take Bangladesh Bank's approval in time for selling their stake. Mr. Salman blamed weak regulation in the stock market for the rumour: "This is not our fault. This is absolutely a regulatory problem," he said, "We're not pursuing the mater any more," he added. Md Iqbal Hossain, a director of PHP, also echoed Salman. "We wanted to revive the bid as Singer is a very good company with sound financial health. But we are not pursuing it anymore," he told the FE. A Singer Bangladesh official said he would not comment on the price sensitive issue. Singer, a listed company at the Dhaka Stock Exchange since 1983, is a popular household name in Bangladesh for its famous sewing machines. But over the last two decades the firm has diversified its operation by opening hundreds of stores across the country. It now sells home appliances, electronics, motor cycles, mobile phones, laptops through its pioneering installment model. Singer shares gained steadily over the last one month due to the rumour. It closed at Tk3,050 on Thursday, a gain of over 400 taka per share in the last four weeks.