RAK Ceramics down on share sell-out news

The stock price of RAK Ceramics fell 9.5 per cent in the last two consecutive trading sessions to Tk 57.8 per share despite the disclosure that Middle-Eastern drug manufacturer Julphar and its partners will acquire  77.5 per cent stake in RAK Pharmaceuticals.
UAE-based Julphar will bear some liabilities of RAK Pharmaceuticals, with 55 per cent of its shares owned by RAK Ceramics, a listed company in Bangladesh stock market.
Julphar will invest around $9.5 million to acquire the shares and settle the liabilities, RAK Ceramics said in a posting on the Dhaka Stock Exchange (DSE) website Monday.
RAK Ceramics will transfer its entire holding of 51.7 million ordinary shares of RAK Pharmaceuticals to Julphar for Tk 7 each share -- all amounting to Tk 361.9 million.
An independent value assessor determined the transfer value, RAK Ceramics said, adding that the matter has been approved by the company's board of directors.
RAK Ceramics, a Bangladesh-UAE joint venture, was listed on the stock market in 2010. Each share of the tiles and sanitary-ware manufacturer traded between Tk 61.6 and Tk 57.3, before closing at Tk 57.8 on Tuesday.
The company's net profit fell 11.52 per cent year-on-year to Tk 424.85 million in January-September, with Tk 1.26 in earnings per share compared to Tk 1.43 a year ago.
Market insiders said the share price of RAK Ceramics was rose irrationally in the last few sessions following speculations despite sluggish trend in construction sector.
Share price of RAK Ceramics rose 13.65 per cent to Tk 63.7, in the four trading sessions -- December 15 to 21 before share sell-out news published.
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