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Atlas enters into five-yr deal with TVS Auto

State-run company to assemble, sell TVS motorbikes

FE Report | February 13, 2019 00:00:00

Atlas Bangladesh, a state-run listed company, signed a five-year business agreement with TVS Auto Bangladesh (TVS) on Monday, said an official disclosure on Tuesday.

Earlier, a memorandum of understanding (MoU) between them was signed on May 24 last year.

As per the MoU, Atlas Bangladesh will assemble and sell motorcycles of TVS brand to the government and semi-government organisations, government-funded projects, autonomous bodies and any other non-government organisations (NGOs).

Atlas also can sell the motorcycles to any individual or retail sales with the prior approval/permission from the TVS Auto.

"Referring to the earlier news, Atlas has further informed that a permanent business and technical assistance agreement for five years has been signed between Atlas and TVS Auto on Monday," said the disclosure.

TVS Auto may supply the capital machinery and other equipment as required to the company to improve the infrastructure, quality and assembly line for efficiency of CKD (completely knocked-down) assembly or adapt new technology, the disclosure added.

The company will bear the cost of Tk 36.50 million by providing bill from the TVS Auto, according to the disclosure.

On Tuesday, each share of Atlas Bangladesh, listed on the Dhaka bourse in 1988, closed at Tk 139.70, inching up 0.93 per cent over the previous day.

Over the last one year, its share price traded between Tk 108.50 and Tk 174.60 each on the Dhaka Stock Exchange (DSE).

The company's earnings per share (EPS) stood at Tk 0.70 in the negative for July-December 2018 as against minus Tk 1.02 for July-December 2017.

The company paid 10 per cent stock dividend for the year ended on June 30, m2018.

The company's paid-up capital is Tk 331.27 million and authorised capital is Tk 1.0 billion, while the total number of securities is 33.12 million.

The sponsor-directors own 1.13 per cent stake in the company, while the government owns 51 per cent, institutional investors own 19.96 per cent, and the general public 27.91 per cent as on January 31, 2019, the DSE data shows.

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