Emerald Oil Industries will now apply to the stock market regulator, seeking approval to issue the fresh shares
Infographic: TBS
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Infographic: TBS
Emerald Oil Industries has decided to issue fresh shares for its new sponsor-directors at a face value of Tk10 each against their investment at a time when the shares are traded in the secondary market at more than three times higher rates.
Market insiders believe the move will deprive shareholders, despite the fact that the new shares will remain locked in for a certain period.
The decision to issue new shares was already approved at an extra-ordinary general meeting (EGM) on Sunday.
As per the decision, Emerald Oil Industries will issue 3.62 crore new shares, which are almost half of the existing shares, in favour of Minori Bangladesh, allowing the new investors to secure a majority stake in the company’s board.
Emerald Oil Industries will now apply to the stock market regulator, seeking approval to issue the fresh shares.
The lock-in period of new shares will be determined by the Bangladesh Securities and Exchange Commission (BSEC).
On Wednesday, each of Emerald Oil Industries’ shares was traded at Tk32.20.
In 2021, Minori Bangladesh, a subsidiary of Japanese farming company Minori Co Limited, got BSEC nod to bring the company back into production by investing more than Tk40 crore.
The publicly listed firm, producer of the most…
