The securities regulator has approved an agreement of purchasing 7.61 per cent shares of Fu-Wang Food by Minori Bangladesh, an arm of Japan-based Minori Company.
The Minori Bangladesh will purchase the said amount of shares of the Fu-Wang Food from its three directors namely Arif Ahmed Chowdhury, Afsana Tarannum and Lubaba Tabassum, according to a disclosure posted on the website of Dhaka Stock Exchange (DSE).
The Bangladesh Securities and Exchange Commission (BSEC) approved the share purchase agreement subject to fulfillment of three conditions by the buyer.
Under the agreement, above 8.44 million shares held by three directors will be transferred outside the exchanges' trading system at a negotiated price of Tk 10 each.
As per the conditions set by the securities regulator, after the execution of share transfer agreement, Minori Bangladesh will nominate one or more individuals as nominated or representative director against the 7.61 per cent shares in the board of Fu-Wang Food to maintain uninterrupted holding of shares by directors.
The buyer Minori Bangladesh will also inject fresh funds amounting to at least Tk 200 million as a share money deposit or loans to Fu-Wang Food for regularising all liabilities including bank liabilities and smooth operation and management of the company.
"The share money deposited or collected shall be kept in a separate bank account in the name of the company and shall be utilised only for the purpose of regularising bank liabilities, acquisition of land, working capital and ensuring production facilities," another BSEC condition reads.
According to another condition, Fu-Wang Food will obtain consent of the commission for raising capital against share money deposited or collected for the purpose of the compliance of 30 per cent requirement of holding of shares by the board of directors.
Fu Wang Food, presently a 'B' category company, was listed on the stock exchanges in 2000. The company's existing sponsor-directors hold 8.754 per cent shares, institutes 8.33 per cent, foreigners 0.45 per cent and general shareholders 82.47 per cent as on December 31, 2021.
The company's share price on Sunday advanced 9.63 per cent or Tk 2.10 and closed at Tk 23.90 each on the premier bourse DSE.