Mutual Trust Bank (MTB) now has no bar to execute the share purchase deal with Norfund, a Norwegian investment fund, as the central bank has waived a section regarding the shareholders' voting rights.
Earlier, in September, 2018 the MTB approved a proposal to sell 10 per cent or above 63.70 million fresh shares to the Norfund for strengthening the capital adequacy and corporate governance.
Later, on April 30, the Bangladesh Securities and Exchange Commission (BSEC) allowed the bank to increase its paid-up capital by selling shares to the Norfund.
But the execution of the share purchase deal was delayed due to a restriction earlier included in a sub-section of the banking company act.
Then the MTB sought exemption from the sub-section 14(1)(f) of the banking company act.
As per the act, no banking company incorporated in Bangladesh, except new banks and special banks, will commence its business in Bangladesh unless it satisfies the condition that the voting rights of any individual shareholder, except those of the government, do not exceed 5 per cent of the total voting rights of all the shareholders.
Finally, the central bank waived the sub-section in last week paving the way of executing the share purchase deal earlier signed between the MTB and the Norwegian investment fund Norfund.
As a result, the Norfund will have voting right at the MTB for its entire shareholding.
The MTB will sell 10 per cent or above 63.70 shares at a price of Tk 27.19 each including a premium of Tk 17.19 for each ten taka share at a total value of above Tk 1.73 billion.
The MTB, presently an 'A' category company, was listed on the stock exchanges in 2003.
The company's sponsor-directors hold 41.08 per cent shares, institutes 22.48 per cent and general shareholders 36.44 per cent as of October 31, 2019.
After the execution of the share purchase agreement, Norfund will be entitled as foreign share holder.
The price of the shares of the MTB closed at Tk 27.80 each recently with a marginal loss of 2.50 per cent or Tk 0.70 on the Dhaka Stock Exchange (DSE).
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