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The board of directors of Meghna Cement has decided to issue preference shares to its existing sponsor directors/directors, said an official disclosure on Monday.
Earlier on August 13, 2018, the company had decided on the issuance of fully redeemable preference shares of Tk 1.0 billion (100 million shares) only to raise its capital through private placement, subject to the approval of the shareholders and by the regulatory authorities.
The company on Monday said the board has further decided to issue 25,097,542 shares (out of earlier decided 100 million shares) fully redeemable non-convertible and non-listed preference shares of Tk 10 each to its existing sponsor directors/directors (excluding independent directors).
The preference shares will be issued in compliance with regulatory directive as to maintain 30 per cent of the equity of this company held by its board of directors/sponsors, the disclosure added.
According to a regulatory directive, sponsors, directors, and promoters of a company listed with any stock exchange will have to jointly hold at least 30 per cent stake in the firm for all time.
And the 25,097,542 fully redeemable non-convertible and non-listed preference shares at Tk 10 each in total amounting to Tk 250,975,420 to be subscribed by the existing sponsor directors/directors (excluding independent directors) of the company through private placement.
Meghna Cement, which was listed on the Dhaka Stock Exchange (DSE) in 1995, disbursed 10 per cent stock dividend in 2018.
Each share of the company closed at Tk 94.20 on Sunday at the DSE.
The company’s paid-up capital is Tk 247.50 million and authorised capital is Tk 5.0 billion, while the total number of securities is 24.75 million.
The sponsor-directors own 49.77 per cent stake in the company, while institutional investors own 32.77 per cent, and the general public 17.46 per cent as on February 28, 2019, the DSE data shows.