Dhaka, Bangladesh (BBN)- IFAD Autos, an auto mobile dealer, will take 49 percent equity shares of Gulf Oil Bangladesh, a subsidiary company of Gulf Oil International (UK) at a cost of US$ 1.685 million, officials said.
In this regard, the IFAD Autos has signed a memorandum of understanding (MOU) with Gulf Oil Bangladesh.
Gulf Oil Bangladesh is engaged in importing and selling its renowned brands of lubricant, grease and car care products in Bangladesh. Gulf Oil
“The investment of US$ 1.685 million is expected to contribute a profit of BDT 43.6 million in the next year towards overall profitability of the company (approximately),” said a statement posted on the Dhaka Stock Exchange (DSE) website on Sunday.
The investment amount shall be financed from the own fund of IFAD Autos, said the statement.
IFAD Autos, which was listed on the Dhaka bourse in February 2015, disbursed 13 percent cash dividend to general shareholders excluding the sponsors/directors and 4.0 percent stock dividend for all shareholders for the year ended on June 30, 2016.
The company’s third quarter (Q3) earnings per share (EPS) stood at BDT 2.01 for January-March, 2017 as against BDT 0.96 for the same period a year ago.
In months for July, 2016 to March, 2017, EPS for the company stood at BDT 5.05 as against BDT 3.61 for July, 2015-March, 2016.
The auto mobile dealer’s share price closed at BDT 137.40 each on Thursday, the last trading session of the week, registering an increase of 6.51 percent over the previous week.
The company’s paid-up capital is BDT 1.55 billion and authorised capital is BDT 2.0 billion, while the total number of securities is 155.48 million.
The sponsor-directors own 62.77 percent stake in the IFAD Autos, while institutional investors own 19.88 percent, and general public 17.35 percent as on April 30, 2017, the DSE data shows.
BBN/SSR/SR