Janata Jute Mills changes hand in Tk700cr deal
Skip to main content
  • Home
  • Economy
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Splash
  • Features
  • Videos
  • Long Read
  • Games
  • Epaper
  • More
    • COVID-19
    • Bangladesh
    • Infograph
    • Interviews
    • Offbeat
    • Thoughts
    • Podcast
    • Quiz
    • Tech
    • Subscribe
    • Archive
    • Trial By Trivia
    • Magazine
    • Supplement
  • বাংলা
The Business Standard
MONDAY, MAY 23, 2022
MONDAY, MAY 23, 2022
  • Home
  • Economy
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Splash
  • Features
  • Videos
  • Long Read
  • Games
  • Epaper
  • More
    • COVID-19
    • Bangladesh
    • Infograph
    • Interviews
    • Offbeat
    • Thoughts
    • Podcast
    • Quiz
    • Tech
    • Subscribe
    • Archive
    • Trial By Trivia
    • Magazine
    • Supplement
  • বাংলা
Janata Jute Mills changes hand in Tk700cr deal

Corporates

Sajjadur Rahman
28 June, 2020, 11:30 pm
Last modified: 29 June, 2020, 05:35 pm

Related News

  • TAP and Dana sign deal to offer embedded financial services
  • Hollywood film-crew union reaches tentative deal, averting strike
  • Tech deals, data come under fire in Biden’s sweeping order
  • High-stakes oil diplomacy puts future of OPEC+ deal at risk
  • EU strikes deal on huge farm subsidies, ending three years of negotiations

Janata Jute Mills changes hand in Tk700cr deal

Both parties completed the deal and transfer of shares earlier this month after a series of virtual meetings

Sajjadur Rahman
28 June, 2020, 11:30 pm
Last modified: 29 June, 2020, 05:35 pm
Janata Jute Mills changes hand in Tk700cr deal

The Bangladeshi private sector has witnessed its biggest ever silent acquisition in the country during the Covid-19 pandemic.

Akij Group Managing Director Sk Bashir Uddin has bought Janata Jute Mills – one of the largest, oldest and most-profitable jute product makers in the country – for around Tk700 crore. The deal also includes Sadat Jute Mills, a second factory owned by Janata – that was established in 1985 in Cumilla – and a cold storage facility.

Both parties completed the deal and transfer of shares earlier this month after a series of virtual meetings.

"We want the mills to be run successfully as we have a strong reputation and renowned buyers across the globe," Mahmudul Huq, the erstwhile deputy managing director of Janata Jute Mills, said while explaining the thinking behind the decision to sell.

Najmul Huq, his older brother and managing director of Janata Jute Mills, could not give adequate time to the business due to his age – nearly 72 years. He has three daughters who live in the United States. Mahmudul's only daughter, who survived a car accident in Italy, is also studying in the US.

"There was nothing wrong with our mills. We were making profits and we had no bank loans," Mahmudul told The Business Standard on Saturday. He said their export value in 2019 was around $55 million (over Tk450 crore).

Despite the takeover by Bashir, Mahmudul will run the jute mills as chief executive officer for around a year as per the deal between both parties.

Acquisitions are very rare in Bangladesh. In most cases foreign companies buy either local or other foreign entities operating in the country.

The most recent, and biggest ever, acquisition also involved Akij Group when it sold its entire tobacco business to Japan Tobacco at a whopping $1.47 billion (equivalent to Tk12,400 crore) in November 2018. In April the same year, Alipay – an affiliate of Alibaba Group – bought 20 percent stakes in bKash.

A Chinese consortium, that includes the Shenzhen and Shanghai stock exchanges, bought 25 percent stakes in the Dhaka Stock Exchange for $125 million (around Tk1,000 crore) in 2018. In the same year, Beximco Pharmaceuticals Limited completed the acquisition of 85.22 percent of Nuvista Pharma Limited.

Before that, there had been four major acquisitions: the purchase of Aktel by Malaysia's Axiata, the acquisition of Warid Telecom by India's Airtel, the purchase of Sheba Telecom by Egypt's Orascom Telecom, and the purchase of Oriental Bank by ICB Financial Group – another Malaysia-based group.

There are some other cases that show foreign companies acquiring either local or foreign firms. However, there are hardly any examples of a local company acquiring another big local firm – except when Transcom Beverage bought Dhaka Beverage in the early '90s.

However, Bashir, who has been leading Akij Group since the demise of his visionary father Sk Akij Uddin in 2006, has shown courage to make such a big move despite already having the country's largest jute mills in operation.

Sources close to the deal said when his other brothers on the board of the group refused to buy another jute mill, Bashir stepped in to acquire Janata and Sadat mills, by himself, along with Zenin Cold Storage.

Despite repeated phone calls and text messages, Bashir has not responded for comment.

Bangladesh is the largest producer of jute in the world – after India. Producing one million tonnes of jute per year, on average, the country is also the largest exporter of raw jute in the world.

Bangladesh exported jute and jute goods worth $752 million during the first 11 months of the current fiscal year. Of the exports, over 60 percent came from jute yarn and twine, followed by raw jute, sacks and bags.

Bangladesh also exported jute carpets worth over $20 million from July to May this year, according to data by the Export Promotion Bureau.

Bangladesh / Top News

Janata Jute Mills / deal

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • BPC hunts for dollar to import fuel oil
    BPC hunts for dollar to import fuel oil
  • Representational Image. Photo: Mumit M/TBS
    Govt to list products to suspend imports amid dollar crisis
  • Infographic: TBS
    With 2 months left, 45% ADP fund still unspent 

MOST VIEWED

  • BYLC Ventures opens applications for fifth cohort
    BYLC Ventures opens applications for fifth cohort
  • SMC Enterprise Ltd Holds ‘Annual Sales Conference’ for FY-2021
    SMC Enterprise Ltd Holds ‘Annual Sales Conference’ for FY-2021
  • Photo: Courtesy
    Al Haramain Hospital distributes relief items to flood affected people in Sylhet
  • Photo: Courtesy
    MTB celebrates Customer Service Week
  • BCOLBD Logo. Photo: Collected
    Blockchain Olympiad Bangladesh 2022 rescheduled
  • 10% instant cashback on bKash payment in Daraz
    10% instant cashback on bKash payment in Daraz

Related News

  • TAP and Dana sign deal to offer embedded financial services
  • Hollywood film-crew union reaches tentative deal, averting strike
  • Tech deals, data come under fire in Biden’s sweeping order
  • High-stakes oil diplomacy puts future of OPEC+ deal at risk
  • EU strikes deal on huge farm subsidies, ending three years of negotiations

Features

Why everybody wants to be like TikTok

Why everybody wants to be like TikTok

10h | Panorama
Illustration: TBS

How the ban on porn sites spawned a local cybersex industry

13h | Panorama
3 best affordable sunscreens for all

3 best affordable sunscreens for all

13h | Mode
Warah uses three types of khadi material: a sheer and light one, a medium count and a thicker one.

Warah: Embroidered with culture and womanhood

15h | Mode

More Videos from TBS

Investors, public to suffer from electricity price hike

Investors, public to suffer from electricity price hike

3h | Videos
Health benefits of summer fruits

Health benefits of summer fruits

4h | Videos
The way Bangladesh saves almost extinct fish

The way Bangladesh saves almost extinct fish

4h | Videos
Padma’s Char now largest grazing-ground

Padma’s Char now largest grazing-ground

4h | Videos

Most Read

1
Tk100 for bike, Tk2,400 for bus to cross Padma Bridge
Bangladesh

Tk100 for bike, Tk2,400 for bus to cross Padma Bridge

2
A packet of US five-dollar bills is inspected at the Bureau of Engraving and Printing in Washington March 26, 2015. REUTERS/Gary Cameron
Banking

Dollar hits Tk100 mark in open market

3
PK Halder: How a scamster rose from humble beginnings to a Tk11,000cr empire
Crime

PK Halder: How a scamster rose from humble beginnings to a Tk11,000cr empire

4
Bangladesh at risk of losing ownership of Banglar Samriddhi
Bangladesh

Bangladesh at risk of losing ownership of Banglar Samriddhi

5
BSEC launches probe against Abul Khayer Hero and allies
Stocks

BSEC launches probe against Abul Khayer Hero and allies

6
The story of Bangladesh becoming a major bicycle exporter
Industry

The story of Bangladesh becoming a major bicycle exporter

The Business Standard
Top
  • Home
  • Entertainment
  • Sports
  • About Us
  • Bangladesh
  • International
  • Privacy Policy
  • Comment Policy
  • Contact Us
  • Economy
  • Sitemap
  • RSS

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - oped.tbs@gmail.com

For advertisement- sales@tbsnews.net

Copyright © 2022 THE BUSINESS STANDARD All rights reserved. Technical Partner: RSI Lab