ACI Motors, a subsidiary of listed company ACI, will receive nearly Tk 840 million in foreign investment, which the company will use for the expansion of its business.
ACI Limited, the business conglomerate, has informed that the board of directors has approved the said foreign investment.
FMO (a Dutch investment bank), CDC (Commonwealth Development Corporation) and Norfund are the primary investors.
The three investors will buy the shares of ACI Motors in the name of Bangladesh Managed Account CV, which is a limited partnership.
As per the approval, the company will issue over 1.55 million convertible non-cumulative preference shares worth of Tk 540 each, including Tk 440 as a premium against the face value of Tk 100 per share.
"The proceeds of the investment will be used for business growth as well as for expansion of existing manufacturing facilities of ACI Motors," the company said in a filing with the Dhaka Stock Exchange (DSE) on Monday.
The new investment will dilute ACI's shareholding in the ACI Motors from 52.70 per cent to 46.80 per cent, the company said.
This second tranche of foreign direct investment by CDC and Norfund in the ACI Motors displays the continued trust and confidence of the foreign investors in the ACI name, the company added.
Each share of the ACI, which was listed on the DSE in 1976, closed at Tk 269.10 on Monday, gaining 2.51 per cent over the previous day.
Advanced Chemical Industries (ACI) has posted profit in nine months of the current fiscal year as the company's consumer products and hygiene items sales increased amid pandemic.
The business conglomerate's consolidated profits stood at Tk 161.23 million in nine months for July, 2020 to March, 2021 while the company reported loss over Tk 1.19 billion in the same period of the previous fiscal year.
The company has reported consolidated earnings per share (EPS) of Tk 3.54 for July 2020-March 2021 as against loss of Tk 15.90 per share for July 2019-March 2020.
The company disbursed 80 per cent cash and 10 per cent stock dividend for the year ended on June 30, 2020.
The company's paid-up capital is Tk 631.10 million, authorised capital is Tk 1.50 billion and the total number of securities is 63.11 million.
The sponsor-directors own 35.28 per cent stakes in the company while the institutional investors own 37.83 per cent and the general public 26.89 per cent as of May 31, 2021, the DSE data shows.
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