Central Pharma directors to sell their entire shares
The board of directors of Central Pharmaceuticals will sell their entire holdings worth over Tk 100 crore to Alif Group due to a lack of working capital.
The decision was taken at a board meeting held on February 20 and the listed company made the declaration in a posting on the Dhaka Stock Exchange website yesterday.
The board of Central Pharma will sign a deal with Alif Group where the five directors of the company will gradually sell their shares to different directors or concerns of Alif Group through block market sales.
Alif Group will form a new board and appoint a new chairman and managing director after buying all the shares, according to the disclosure.
The five directors of the medicine maker are -- Chairman Morsheda Ahmed, Managing Director Munsur Ahamed, directors Rukunuzzaman, Nasima Akter and Parvez Ahamed Bhuiyan.
The managing director said a pharmaceutical company needs a huge investment to be fully compliant and Alif Group has the financial strength to make investments and make it an export-oriented company.
The five directors held a 30.02 percent share in the company, while 13.44 percent was held by institutions and 56.54 percent by the public as of January 31.
The market price of the directors' shares is over Tk 100 crore as of the last trading price.
Central Pharmaceuticals has a paid-up capital of Tk 103.72 crore with a face value of Tk 10 a share. The company was listed with the DSE in 2013 and operated in the 'A' category by declaring over 10 percent stock dividend every year.
Meanwhile, the share price of Central Pharma has witnessed an unusual hike since December last year. The last trading price of a share was Tk 32.7 yesterday, while the opening price at the beginning session was Tk 33.5, according to the DSE website. Its shares were traded at Tk 14.9 at the end of November last year, a price hike of over 119 percent in the last three months.
The DSE called for queries into the company for the unusual price hike on December 20 and February 16. In response, the company said there were no disclosures of price sensitive information.
The company experienced a fall in profit of about 32 percent to Tk 9.77 crore last year from Tk 14.34 crore the previous year, according to the company profile.
Central Pharmaceuticals was established by GETCO/ Bangla CAT in the 1980s. Later, Metro Group purchased the company in 1993 and started operations in 1994.
Metro Group sold the company a few years later to Central Pharmaceuticals' existing Director Munsur Ahamed.
Comments