Summit Alliance Port surges over 14pc on foreign investment hype

FE REPORT
Summit Alliance Port Limited's (SAPORTL) share price soared 14.36 per cent in two days as its subsidiary is to get foreign investment.
Share price of the off-dock service provider & inland water container terminal operator went up to Tk 23.10 per share on the Dhaka Stock Exchange on Tuesday from Tk 20.2 per share on Sunday.
The stock started climbing up after the disclosure that the company will get foreign investment.
On Monday, the company announced that one of its four subsidiaries was going to sell its stakes to one of the leading international logistics providers Hellmann Worldwide Logistics International GmbH.
Investors transacted 0.83 million shares of Summit Alliance Port on Monday, 220 per cent more than its trade volume on Sunday. The share rose 9.9 per cent on the day.
On Tuesday, 1.43 million shares of the company were traded and the price rose further by 4.05 per cent.
SAPORTL's subsidiary Container Transportation Services Limited (CTSL) will issue 0.33 million new shares to Hellmann Worldwide Logistics International.
After completion of the said transaction, SAPORTL will have 60 per cent ownership of CTSL and Hellmann the remaining 40 per cent.
The main objective of CTSL is transporting containerized export/ import cargo to/from Chattogram Port and other depots.
According to the stock exchange filing, CTSL has started freight forwarding and shipping agency business in July 2024 as the local agent of Hellmann Worldwide Logistics (Hellmann).
"With the aim of strengthening their business activities and establishing direct presence in Bangladesh, Hellmann Worldwide Logistics International GmbH (the Principal of CTSL's Freight Forwarding Agency business) has entered into a Share Subscription Agreement with CTSL," said the company.
The shares will be issued at Tk 66.50 each with a premium of Tk 56.50, subject to the approval of shareholders of CTSL and other regulatory compliances.
Summit Alliance Port is a regular dividend-paying company and its profit has shown a steady growth. It gained a 42.7 per cent year-on-year growth in income to Tk 413.63 million in FY24.
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