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Confidence Cement to invest in power plant projects

FE Report | February 01, 2018 00:00:00

The board of directors of Confidence Cement has agreed to invest in the new power plant projects located at Bogra, Rangpur and Chittagong under Confidence Power Holdings Limited.

The capacity of Bogra power plants will be 226 MW, Rangpur 113 MW and Chittagong 54.363 MW, according to the disclosure posted on the Dhaka Stock Exchange (DSE) website on Wednesday.

Confidence Cement has 41 per cent shareholding in Confidence Power Holdings.

The Power Purchase Agreement (PPA) between Confidence Power Holdings with Bangladesh Power Development Board and Implementation Agreement (IA) between Confidence Power Holdings with Power Division has been completed for 2 power plant projects located at Bogra and Rangpur respectively.

Besides these, for 2 other aforementioned projects, letter of Intent (LOI) has been received by Confidence Power Holdings from Bangladesh Power Development, it said.

The board of directors has also decided to invest in another cement plant with a capacity of 5,000 MT per day named as Confidence Cement Dhaka Limited located at Narshingdi, according to the disclosure.

Confidence Cement will have 50 per cent shareholding in Confidence Cement Dhaka, the disclosure said.

Each share of the Confidence Cement, which was listed on the Dhaka bourse in 1995, closed at Tk 155 on Wednesday at Dhaka Stock Exchange (DSE), advancing 0.39 per cent over the previous day.

The company's earnings per share (EPS) stood at Tk 1.75 for October-December, 2017 as against Tk 2.76 for October-December, 2016.

In six months for July-December, 2017, the company's EPS was Tk 2.99 as against Tk 4.06 for July-December, 2016.

The company disbursed 15 per cent cash and 20 per cent stock dividend for the year ended on June 30, 2017.

The company's paid-up capital is Tk 539.92 million and authorized capital is Tk 1.0 billion, while the total number of securities is 53.99 million.

The sponsor-directors own 30 per cent stake in company, while institutional investors own 34.13 per cent, foreign 0.05 per cent and the general public 35.92 per cent as on December 28, 2017, the DSE data shows.

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