MNCs continue to cold shoulder proposal on share offloading

Shakhawat Hossain brMultinational companies (MNCs) in which Bangladesh government has minority stakes are still indifferent to a proposal from the latter to offload a part of its shares in the stock market, official sources said. brThe government had earlier made the decision to offload at least five per cent of its shares in the multinational companies such as global consumer goods giant Unilever and pharmaceutical titan Aventis by April 2006.brThe decision was a part of the government's wide-ranging move to strengthen the local bourses. brBut the multinational companies have not given any positive response to the issue till date, said the officials.brAn inter-ministerial meeting was held last Wednesday at the finance ministry reviewed progress of the government decision to increase the number of quality shares in the stock markets.brThe meeting was told that the industry ministry had made repeated requests to the decision making bodies of the multinational companies to this effect during the last couple of years but without any fruitful outcome.brOffloading five per cent of the government's 39.5 per cent stake in the Unilever could not be executed as the company's board has rejected the industry ministry proposal, said a senior official who attended the meeting.brThe Unilever board has turned down the offer. Instead, it expressed the willingness to buy out the shares that the government wants to make available for public subscription, he said.brThe Anglo-Dutch fast-moving consumer goods company, the Unilever, which has been operating in the country since 1964, controls the board of the Unilever Bangladesh. brFormerly known as Lever Brothers Limited, the Unilever is marketing the internationally renowned brand Lux beauty soap and, at least, 40 other toiletries and consumer brands in the country.brThe company has been growing at a double digit rate since the 1990s. Its annual gross turnover in Bangladesh is estimated at US$ 200 million, holding a firm grip on the fast growing consumer market. brExperts said Unilever stocks would be the most sought after ones in the capital market if it decides to go public.brThe meeting also reviewed status of the programme of offloading shares of some fully state-owned enterprises (SoEs). brThe meeting found that only three out of nearly 40 SoEs had so far implemented the decision to offload their shares in the capital market. They are Jamuna Oil Company Limited, Meghna Petroleum Limited, and Titas Gas.brOffloading of the shares of other companies could not be executed in time due to slow progress in this respect.brSlow progress in completing the necessary procedures have delayed the share off-loading of the sate-owned power, gas and telecommunication companies.brBesides, legal restriction has forced the industry ministry to suspend offloading of the government's 25 per cent out of 51 per cent stake in the Usmania Glass Sheet manufacturing company.br