The securities regulator has allowed Dominage Steel Building Systems to transfer 30.78 million ordinary shares to Akij Resources and two individuals, marking a significant reshuffling of the ownership of the listed steel-building systems manufacturer.
The stock market watchdog, the Bangladesh Securities and Exchange Commission (BSEC) granted its approval on August 27, clearing the proposed transfer of the shares, according to a regulatory filing on Sunday.
As per the regulatory approval, Dominage Steel will transfer the 30.20 per cent stake held by the sponsors and directors to Akij Resources, Sheikh Jasim Uddin and Faria Hossain.
The company said the transfer would be executed outside the regular trading system as a matched transaction. A matched transaction is generally used for the transfer of a predetermined block of shares between identified parties, rather than through normal buying and selling orders on the stock exchange.
Dominage said it would inform the market once the share transfer is completed.
Earlier in April this year, Dominage Steel’s board decided to sell its ownership stakes to Akij Resources and two individuals at a negotiated price through an off-market transaction.
Upon completion of the regulatory process, a new board of directors will take over the management and operations of the company.
No company of the Akij Group has yet been listed on the stock exchanges. So, it will enter the secondary market through the acquisition of Dominage Steel.
Akij Resources holds a significant presence in the steel and construction sectors through its subsidiaries. Officially established in April 2020, it builds on the heritage of the Akij Group, one of Bangladesh’s largest conglomerates.
Meanwhile, the stock of the steel manufacturer has climbed remarkably over the last few months, although it has a negative P/E (price-to-earnings) ratio and one of its factory units has remained shut.
Its stock closed at Tk 63.4 on Sunday, gaining 0.63 per cent over the previous day. The company’s stock climbed 276 per cent in a year.
