Shakib Al Hasan and allies acquire Al-Amin Chemical

Al-Amin Chemical at a glance

• Went public in 2002
• Incurred a loss of Tk32.29 lakh in FY21
• Tk7.39cr accumulated loss
• Tk5cr paid-up capital
• Last dividend paid in 2005
• Main products: thinner and varnish
• Currently out of production

Cricket superstar Shakib Al Hasan, through his two firms, and his allies acquired 48.175% shares from the sponsors-directors of Al-Amin Chemical Industries - a delisted varnish and thinner products manufacturer.

The Bangladesh Securities and Exchange Commission (BSEC) approved the acquisition on Monday.

According to the BSEC, Shakib's two firms - Monarch Mart Limited and Monarch Express Ltd - bought 2.4% and 4.8% shares respectively.

Eshaal Communication Ltd, represented by Aminul Islam Sikdar and Md Khairul Bashar, bought 14.4% shares of Al-Amin Chemical.

Lava Electrodes Industries bought 2.4%, AFM Rafiquzzaman 10%, Mashuk Alam 6%, and Munshi Shofiuddin bought 8.175% shares of the company.

Al-Amin Chemical Industries was incorporated in 1990 and listed on the stock exchanges in 2002. Its factory is located in the Bangladesh Small and Cottage Industries Corporation (BSCIC) area in Kanaipur, Faridpur.

The company is currently out of production but is in the pipeline to be re-launched on the SME platform of the Dhaka Stock Exchange (DSE).

BSEC rules for the new owners

As per the BSEC rules, the new shareholders will collectively have to maintain the minimum 30% shareholding of the company.

Also, the company's board of directors must incorporate the new shareholders who hold a minimum of 2% shares in the company.

The company is not allowed to raise further capital until its board is restructured.

The new board will resume the company's production and regularise all pending issues, including bank-related matters, within three months of the takeover.

The new shareholders will inject fresh funds into the company to get it restarted by maintaining a separate bank account.

Besides, all the shares of the company will be dematerialised immediately after this acquisition is completed.

Company financials

According to the DSE, the company had paid a 5% cash dividend last in 2005.

In the last 2020-21 fiscal year, its net loss stood at Tk32.29 lakh and accumulated loss at Tk7.39cr.

The paid-up capital of the company was Tk5 crore.

Sponsors and directors jointly held 48.18%, institutions 2.54%, and the general public 47.76% shares in the company.

The last trading price for each share of the company was Tk15 at the DSE.