MI Cement Factory Ltd has approved formation of three subsidiary companies -- Ocean Voyager Shipping Lines, Ocean Victory Shipping Lines and Ocean Vision Shipping Lines.
The board of directors of the company has also okayed 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.
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 have transparent accountability and responsibility, it said.
It will also ensure that operating and financial performance is gauged separately with separate key performance indicators for financial and other performance that can determine performance incentives.
Therefore, it is imperative that the three mother vessels may be transferred to MI Cement'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 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, said the disclosure.
All these companies are providing dedicated service to the mother company to sustain its operations. In this regard, the companies maintaining current accounts with sister concerns or associate companies against the goods or services received from sister concerns or associate companies, the disclosure added.
Each share of the MI Cement, which was listed on the Dhaka bourse in 2011, closed at Tk 43.60 on Wednesday, remaining unchanged over the previous day.
The company has recommended 10 per cent cash dividend for the year ended on June 30, 2019.
The company has also reported EPS of Tk 1.69, NAV per share of Tk 48.22 and NOCFPS of Tk 3.57 for the year ended on June 30, 2019 as against Tk 2.13, Tk 47.98 and Tk 1.36 respectively for the same period of the previous year.
In 2018, the company disbursed 15 per cent cash dividend.
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