IBN Sina Trust, one of the corporate sponsors of Islami Bank Bangladesh Limited, on Thursday sold its holdings in crisis-hit IBBL with the Chitttagong based S Alam Group buying the shares as it continued to tighten grip on the bank.
IBN Sina Trust in a notice on Dhaka Stock Exchange web site on Thursday expressed intention to sell its entire holdings of 3,60,77,391 shares of the company at prevailing market price (in the block market) through Dhaka and Chittagong stock exchanges within next 30 working days.
Sources in stock exchanges said a number of companies affiliated with S Alam Group on the same day bought the IBBL shares from Ibn Sina through the Chittagong Stock Exchange at a total price of Tk 90.19 crore or Tk 25 a share.
Sources said that S Alam affiliated companies also bought another 1.5 crore shares of IBBL through Dhaka and Chittagong stock exchange on the same day taking the total number of buy to over 5 crore shares at a total price of Tk 127.52 crore.
Sources said that Ibn Sina sold the shares through Islami Bank Securities while S Alam Group linked Masra Holding, Masra Food and Beverage bought the shares. Additional shares of the banks were bought through Reliance and Times brokerage houses of S Alam Group.
With the latest purchase of IBBL shares, S Aalm now holds more than one third of the total stakes of the bank.
Earlier in late 2016 and early 2017, S Alam bought a significant amount of shares of IBBL through a number of companies virtually taking control of the bank.
The bank has been mired in crisis and controversy since the takeover by the group.
The bank is now facing acute liquidity crisis forcing it to stop lending large loans.
In a series of events over the past one year, the bank’s chairman Arastoo Khan, who was appointed ousting the then chairman and through a major reshuffle, tendered his resignation on April 17.
He became the chairman of the bank following a major reshuffle with the ouster of a number of directors, including the then chairman Mustafa Anwar and managing director Mohammad Abdul Mannan, as S Alam Group tightened its grip on the bank placing people linked with the group to the bank’s board.
S Alam Group, blessed by the present government, has allegedly also staged hostile takeovers of a number of private banks in the country.
IBBL faced a major restructuring process under the government’s initiative to oust sponsor-directors backed by Bangladesh Jamaat-e-Islami, which is accused of war crimes during the liberation war.
After the takeover of IBBL by the S Alam Group associate entities in the year 2017, Islamic Development Bank, one of the sponsor-directors of Islami Bank Bangladesh Ltd, sold its 8.69 crore shares in the bank.
Shareholdings of IDB in IBBL declined to 3.38 crore from 12.08 crore as the Saudi-based international Islamic bank has grown frustrated with the takeover of the bank by S Alam.
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