The board of directors of MI Cement Factory Ltd has approved formation of the three subsidiary companies -- Ocean Voyager Shipping Lines, Ocean Victory Shipping and Ocean Vision Shipping Lines.
The board has also approved transfer of the three mother vessels owned by the MI Cement to its three fully owned subsidiary companies, according to an official disclosure on Wednesday.
The MI Cement’s core business is cement production and sale. Shipping is a specialised business that requires separate knowledge and skills that is quite different from current business.
At the moment, the performance and profit and loss from shipping operations is getting merged into the core business of cement, said the disclosure.
Having a separate company will ensure transparency and separate financials with clear accountability and responsibility, it said.
It will also ensure that operating and financial performance is gauged separately with separate KPIs for financial and other performance that can factor in performance incentives.
Therefore, it is imperative that the three mother vessels may be transferred to MICFL’s three separate fully owned subsidiaries companies, -- Ocean Voyager Shipping Lines, Ocean Victory Shipping Lines and Ocean Vision Shipping Lines at a valuation of Tk 568.50 million, Tk 384.60 million and Tk 706.10 million respectively.
The board of the company has also approved maintaining of the current account with sister concerns or associate companies or subsidiary companies, of the mother company, engaged in manufacturing and selling of Cement.
In addition, it has a number of sister concerns or associate companies that are engaged in the supply chain of inbound and outbound logistics and forward and backward linkage.
All these companies are providing dedicated service to the mother company to sustain its operations. In this regard, the companies are maintaining current accounts with sister concerns or associate companies against the goods or services received from sister concerns or associate companies, the disclosure said.
Each share of the MI Cement, which was listed on the Dhaka bourse in 2011, closed at Tk 43.60 on Tuesday.