Govt to offload 20pc stakes in Unilever through bourses
Sunday, 9 November 2008
Shakhawat Hossain
The government has made a move to offload 20 per cent of its stake in Unilever Bangladesh through the stock exchanges under direct listing, official sources said.
The government has a total of 39.5 per cent equity in Unilever, the officials said adding after offloading shares through the stock exchanges the remaining stakes will be sold back to the company.
The industry ministry has sought finance ministry's approval for off-loading and sale of its stakes in Unilever.
The Unilever that had remained indifferent towards the government disinvestment move for almost two years agreed last month on the proposition.
Market analysts said the floating of Unilever Bangladesh shares will certainly make the investors enthusiastic as the company has around US$ 200 million in annual turnover.
Formerly known as Lever Brothers, Unilever Bangladesh has been growing at a double digit rate since the 1990s. The fast growing Anglo-Dutch company is holding a firm grip on the country's expanding consumer market, they said.
The multinational company has been operating under the joint venture since 1964. It sells beauty soap Lux and at least 40 other toiletries and consumer items in the country.
Under the proposal, 20 per cent of the government share in Unilever will be sold first through stock exchanges under direct listing and offer each of its remaining shares to Unilever at the first month average weighted price.
The industry ministry has worked out such pricing formula after consultations with the Securities Exchange Commission (SEC) and Investment Cooperation of Bangladesh (ICB).
They agencies said offloading under direct listing and the price formula will best protect the country's interest.
The finance ministry officials, however, said the proposed plans are more pragmatic than the original ones that were drawn up almost two years ago, when the government wanted to offload only a portion of its stake in Unilever to strengthen the stock market.
As per the original plans the government wanted to offload certain portions of its shares in multinational companies to strengthen the local stock market.
It first decided to offload only five per cent of its share in Unilever. It has already offloaded certain portions of Titas, Jamuna Oil and Meghna Petroleum in the stock market.
But there was no major breakthrough as the Unilever, which won majority stakes in the company, had ignored the plea of the industry ministry.
The government has made a move to offload 20 per cent of its stake in Unilever Bangladesh through the stock exchanges under direct listing, official sources said.
The government has a total of 39.5 per cent equity in Unilever, the officials said adding after offloading shares through the stock exchanges the remaining stakes will be sold back to the company.
The industry ministry has sought finance ministry's approval for off-loading and sale of its stakes in Unilever.
The Unilever that had remained indifferent towards the government disinvestment move for almost two years agreed last month on the proposition.
Market analysts said the floating of Unilever Bangladesh shares will certainly make the investors enthusiastic as the company has around US$ 200 million in annual turnover.
Formerly known as Lever Brothers, Unilever Bangladesh has been growing at a double digit rate since the 1990s. The fast growing Anglo-Dutch company is holding a firm grip on the country's expanding consumer market, they said.
The multinational company has been operating under the joint venture since 1964. It sells beauty soap Lux and at least 40 other toiletries and consumer items in the country.
Under the proposal, 20 per cent of the government share in Unilever will be sold first through stock exchanges under direct listing and offer each of its remaining shares to Unilever at the first month average weighted price.
The industry ministry has worked out such pricing formula after consultations with the Securities Exchange Commission (SEC) and Investment Cooperation of Bangladesh (ICB).
They agencies said offloading under direct listing and the price formula will best protect the country's interest.
The finance ministry officials, however, said the proposed plans are more pragmatic than the original ones that were drawn up almost two years ago, when the government wanted to offload only a portion of its stake in Unilever to strengthen the stock market.
As per the original plans the government wanted to offload certain portions of its shares in multinational companies to strengthen the local stock market.
It first decided to offload only five per cent of its share in Unilever. It has already offloaded certain portions of Titas, Jamuna Oil and Meghna Petroleum in the stock market.
But there was no major breakthrough as the Unilever, which won majority stakes in the company, had ignored the plea of the industry ministry.