IDB decides to sell off stake in Northern Jute

Staff Correspondent | Published: 23:54, Dec 29,2017 | Updated: 00:19, Dec 30,2017

 
 

Jeddah-based Islamic Development Bank has taken a decision to sell off its entire stake in Northern Jute Manufacturing Company Limited at the prevailing market price.
The IDB recently submitted a proposal to the board of directors of the company in this connection, Dhaka Stock Exchange sources said. Northern Jute is listed with the DSE.
In May this year, the IDB also sold off majority of its shares in Islami Bank Bangladesh.
According to the DSE sources, the IDB now holds 6.42 lakh Northern Jute shares worth around Tk 35.46 crore considering the current market price of the company’s shares.
The sponsor-directors are now holding 45.02 per cent of the company’s shares. Of the shares, the IDB alone holds 30 per cent.
The IDB in its proposal informed the Northern Jute’s board that it would sell its entire shares in the company.
Northern Jute informed the DSE that the foreign company was willing to resign voluntarily from the board of directors of Northern Jute.
The company further informed that if IDB resigned from the board, the joint shareholding position of the sponsors and directors of the company would be only 14.06 per cent, which would be a noncompliance of the Bangladesh Securities and Exchange Commission directive regarding holding of minimum 30 per cent shares by the sponsors and directors of any listed company.
The board of directors of Northern Jute will take decision in this regard in its next board meeting which would be held in the next month, the company informed the DSE.

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