MetroNet’s future bleak as shareholders clash over ownership

Infighting and clashes between shareholders over ownership of the company has put the country's one of the largest internet service providers MetroNet Bangladesh Limited's future in uncertainty. 

In order to control the major shares of the company, one group has formed a new management board, excluding the existing board's managing director.

While the other party, filed a case at the Chief Metropolitan Magistrate Court, Dhaka against the opponent group with an allegation of attack in the company's data centre.

Meanwhile, self-declared new management held a press conference on Sunday in the Capital and accused that Company's Managing Director of allegedly embezzling money and hatching a conspiracy to shut Metronet.

However, the clash has risked the job security of almost 400 employees who are now working at the company.

MetroNet is a nationwide internet service provider that provides internet in most metropolitan cities of the country. Apart from the internet, the company also has cloud and IP telephony services.

Of the company's owners, Rahimafrooz Group holds a leading share with 51% stake while Flora Telecom and MetroNet founder Ferdous Azam Khan and others hold the rest of the stake.

How the dispute started

Industry insiders said that the clash started last year when Rahimafrooz announced to sell its stake.

Chalking out the plan to control the company, Mustafa Rafiqul Islam, nominee Director of Flora Telecom Limited, a shareholder at Metronet formed a new management committee and submitted papers at the RJSC, siding with the existing board, said sources.

Meanwhile, Rahimafrooz as a majority shareholder to protect the interest of MetroNet, filed a case before the Joint District Judge along with an application seeking injunction, against Mustafa Rafiqul Islam, nominee Director of Flora Telecom Limited. The case is now under jurisdiction.

Attack on Metronet data centre:

On 01 March, however, a group of miscreants attacked the Metronet's data centre at the capital Banani.

In a statement, Sayed Almas Kabir, CEO of Metronet told the media that the attack was led by miscreants including Md Mahbubul Alam and Ferdous Azam Khan.

"The aim of the attack was to prove Rahimafrooz unable to lead Metronet that has been providing some national emergency service like 999 call service, e-passport, data connection service of different banks and insurance companies," said Sayed Almas Kabir.

Almas Kabir accused of conspiracy to shut Metronet:

Meanwhile at Sunday's press conference, self-declared margining director of MetroNet Mustafa Rafiqul Islam accused the former BASIS president Almas hatches conspiracy to shut MetroNet.

"The largest internet service provider in the country is facing the risk of shutdown amid irregularities of incumbent chief executive Syed Almas Kabir," he accused.

"Syed Almas Kabir hatched a conspiracy against MetroNet by issuing letters to different banks and financial institutions without the approval of the board," Mustafa Rafiqul Islam told a press conference at the Dhaka Reporters Unity (DRU) on Sunday.

He also accused that Rahimafrooz and Syed Almas Kabir have withdrawn about Tk 11 crore in the name of share purchase.

"Almas Kabir cheated the other three officials to become the sole owner by signing share Purchase Agreement (SPA) with each of them separately in June 2022 to purchase the entire shares of Rahimafrooz Group, Flora Telecom and MetroNet founder Ferdous Azam Khan in his own name,' accused Mustafa Rafiqul.

Almas Kabir, however, denied the allegations and said that Mustafa Rafiqul Islam called the press conference to take attention off the alleged attack on the Metronet data centre in Banani.

Talking about the money embezzlement allegation, Almas Kabir said that the money was sent to the employees as salary and it was through the company's bank account.

When contacted, a top official at Rahimafrooz told The Business Standard that Mustafa Rafiqul Islam and its gong are attempting to take over the company through illegal means.

Therefore, as a majority shareholder we have filed a case before the Joint District Judge to protect the interest of MetroNet, along with an application for injunction, he said.

About the press conference, he said "It came to our notice that Mostafa Rafiqul Islam identifying himself as a Managing Director of MetroNet called a press conference to suppress his terrorist subversive attack at the data centre of MetroNet, which amount to a contempt of court,"

The Rahimafrooz official added that MetroNet has no involvement with Sunday's press conference.