MTB decides to sell 10pc stake to Norfund

Mutual Trust Bank (MTB) has decided to issue above 63.70 million shares to Norfund, the Norwegian Investment Fund, at a price of Tk 27.19 each.
The company took the decision as part of its move to enhance the paid-up capital along with strengthening corporate governance.
The company's board of directors at a meeting on Wednesday took the decision to issue fresh shares equivalent to 10 per cent of total outstanding shares to Norfund.
The officials said relevant formalities of issuing 63.70 million fresh shares to Norfund are likely to be completed by December this year subject to the approval from the regulator.
Anis A Khan, managing director of MTB, said after taking shareholders' approval at the extraordinary general meeting (EGM), they would seek consent of the central bank and the securities regulator.
"We will submit applications to the Bangladesh Bank and the securities regulator early November, seeking their consent in favour of issuing shares to Norfund," Mr Khan said.
He said relevant formalities would be completed by December this year.
The company will hold EGM on November 1, 2018 to issue fresh capital and amend a few clauses of Articles of Association (AoA).
When asked about possible changes in AoA, the managing director said the AoA would be made more time-befitting.
Mr Khan said their bank's corporate governance would be strengthened more after issuance of shares to Norfund.
"Our bank's credibility in case of LC (Letter of Credit) will increase more abroad," he said.
As per the board's decision, MTB will issue above 63.70 million shares or 10 per cent of total outstanding shares, whichever is higher on the date of issuance.
The shares will be issued at a price of Tk 27.19 each including a premium of Tk 17.19 for each ten taka share at a total value of above Tk 1.73 billion.
Norfund will nominate a member to the Board of Directors of MTB.
MTB, presently an 'A' category company, was listed on the stock exchanges in 2003.
The company's sponsor-directors hold 37.31 per cent shares while institutes 23.39 per cent and general shareholders 39.30 per cent as of August 31, 2018.
The company disbursed 12.50 per cent stock dividend for the year ended on December 31, 2017.
The company reported consolidated EPS of Tk 3.89, consolidated NAV per share of Tk 23.08 and consolidated NOCFPS (Net Operating Cash Flow Per Share) of Tk 0.06 for the year ended on December 31, 2017 as against Tk 2.87 (restated), Tk 19.26 (restated) and Tk 6.27 (restated) respectively for the same period of the previous year.
The consolidated EPS was Tk 0.88 for the April-June period of 2018 as against Tk 0.23 for the same period in 2017.
The bank's share price closed at Tk 38.50 each on Thursday with a marginal rise of 4.07 per cent or Tk 1.5.

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