IDLC Finance becomes cent percent local co
Raihan M Chowdhury | Monday, 9 March 2009
IDLC Finance Ltd, country's largest Non-Banking Financial Institution (NBFI) has become a cent percent local company as Korea Development Financing Corporation (KDFC) and Kookmin Bank have sold their entire stakes to some local entities.
"We are now a full local company as both the South Korean sponsor shareholders have sold their stakes to local City Bank Ltd, Eastern Bank Ltd (EBL) and Phoenix Insurance Company Ltd," an IDLC source told the FE Sunday.
KDFC and Kookmin Bank have disposed off their entire holdings of 5,00,000 (20 per cent) and 2,50,000 (10 per cent) shares respectively.
City Bank Ltd bought 5,00,000 shares while EBL and Phoenix Insurance Company acquired the rest of the number of shares.
The transactions took place outside the trading system of the stock exchanges, the source added.
"The Securities and Exchange Commission (SEC) has given waiver to City Bank Ltd from Substantial Acquisition Rules, 2002 to purchase the new IDLC shares.
The transferred shares will remain lock-in for a period of 1 (one) year from the date of execution of the said transfers.
With the latest purchase, the presence of City Bank in the IDLC board became stronger as the first generation private commercial bank had accounted for 9.70 per cent shares of IDLC ahead of buying the new shares.
Apart from KDFC and Kookmin Bank, the foreign sponsor shareholders of IDLC were Aga Khan Fund for Economic Development (2.40 per cent), International Finance Corporation (10 per cent) and German Investment and Development Company (DEG-2.50 per cent).
Of them, Aga Khan sold their shares in 2007, IFC in 2005 and DEG in 2004.
Apart from City Bank, EBL and Phoenix Insurance, the domestic institutional shareholders of IDLC Finance are Sadharan Bima, Transcom Group, Mercantile Bank, Eskayef Bangladesh and Reliance Insurance.
Of them, Sadharan Bima is the sponsor shareholder of IDLC with 7.62 per cent ownership.
Established in 1985, the IDLC Finance has now a paid-up capital of Tk 200 million.
"The paid-up capital of our company will rise to Tk 300 million in near future with the adjustment of the proposed stock dividend at the rate of 20 per cent," an IDLC source said.
The board of directors of the listed company has recommended 15 per cent cash and 20 per cent stock dividend for the shareholders for the year ended December 31,2008.
The IDLC Finance will hold the annual general meeting March 30 while the record date is March 11.
The company's net profit in 2008 rose to Tk 254.98 million against Tk 252.44 million of 2007.
The earning per share also rose to Tk 101.99 in 2008 against Tk 100.97 of 2007.
The company's consolidated profit after tax in 2008 rose to Tk 406.37 million against Tk 303.33 million in 2007.
Meanwhile, the stock prices of City Bank and EBL marked rises on the Dhaka Stock Exchange (DSE) Sunday following purchasing of IDLC shares.
Per share of City Bank closed at Tk 449.50, a 3.45 per cent up against the previous day while EBL registered a 7.53 per cent rise to close at Tk 485.00 on the DSE.
"We are now a full local company as both the South Korean sponsor shareholders have sold their stakes to local City Bank Ltd, Eastern Bank Ltd (EBL) and Phoenix Insurance Company Ltd," an IDLC source told the FE Sunday.
KDFC and Kookmin Bank have disposed off their entire holdings of 5,00,000 (20 per cent) and 2,50,000 (10 per cent) shares respectively.
City Bank Ltd bought 5,00,000 shares while EBL and Phoenix Insurance Company acquired the rest of the number of shares.
The transactions took place outside the trading system of the stock exchanges, the source added.
"The Securities and Exchange Commission (SEC) has given waiver to City Bank Ltd from Substantial Acquisition Rules, 2002 to purchase the new IDLC shares.
The transferred shares will remain lock-in for a period of 1 (one) year from the date of execution of the said transfers.
With the latest purchase, the presence of City Bank in the IDLC board became stronger as the first generation private commercial bank had accounted for 9.70 per cent shares of IDLC ahead of buying the new shares.
Apart from KDFC and Kookmin Bank, the foreign sponsor shareholders of IDLC were Aga Khan Fund for Economic Development (2.40 per cent), International Finance Corporation (10 per cent) and German Investment and Development Company (DEG-2.50 per cent).
Of them, Aga Khan sold their shares in 2007, IFC in 2005 and DEG in 2004.
Apart from City Bank, EBL and Phoenix Insurance, the domestic institutional shareholders of IDLC Finance are Sadharan Bima, Transcom Group, Mercantile Bank, Eskayef Bangladesh and Reliance Insurance.
Of them, Sadharan Bima is the sponsor shareholder of IDLC with 7.62 per cent ownership.
Established in 1985, the IDLC Finance has now a paid-up capital of Tk 200 million.
"The paid-up capital of our company will rise to Tk 300 million in near future with the adjustment of the proposed stock dividend at the rate of 20 per cent," an IDLC source said.
The board of directors of the listed company has recommended 15 per cent cash and 20 per cent stock dividend for the shareholders for the year ended December 31,2008.
The IDLC Finance will hold the annual general meeting March 30 while the record date is March 11.
The company's net profit in 2008 rose to Tk 254.98 million against Tk 252.44 million of 2007.
The earning per share also rose to Tk 101.99 in 2008 against Tk 100.97 of 2007.
The company's consolidated profit after tax in 2008 rose to Tk 406.37 million against Tk 303.33 million in 2007.
Meanwhile, the stock prices of City Bank and EBL marked rises on the Dhaka Stock Exchange (DSE) Sunday following purchasing of IDLC shares.
Per share of City Bank closed at Tk 449.50, a 3.45 per cent up against the previous day while EBL registered a 7.53 per cent rise to close at Tk 485.00 on the DSE.