BRAC Bank to buy majority stakes in GSP Finance

BRAC Bank Limited, one of the fastest growing private commercial banks, has decided to acquire 51 percent stakes in GSP Finance Company (Bangladesh) Limited, a joint venture leasing company, at about Tk 19.5 crore.
Both sides signed yesterday a memorandum of understanding on this issue.
“GSP Finance Company (Bangladesh) Limited (GSPB) has agreed to sell 1946,500 new shares to the BRAC Bank Limited at a face value of Tk 100 per share,” a senior official of GSPB told The Daily Star.
Prices of 1946,500 GSPB shares will cost the bank Tk 19.465 crore, the official said.
Sources said foreign individuals and institutions own some 61.78 percent shares of GSPB.
After issuing 1946,500 shares to the BRAC Bank Limited, total shares of GSPB will stand at 38,16,500.
The paid-up capital of the leasing company will be doubled after selling shares to the BRAC Bank. GSPB's present paid-up capital is just Tk 18.7 crore.
According to the BRAC Bank sources, GSPB offered them first to buy the shares to raise the company's capital base. After a series of negotiations, both sides have come to an agreement.
GSPB started its commercial operation on April 17, 1996. Its authorised capital is Tk 100 crore, of which Tk 18.7 crore is fully paid-up.
GSPB's principal activities include lease financing of capital goods for industries such as plant, machinery and construction equipment, marine, road transport, medical, office and electrical equipment, power generators and boilers etc.
GSPB is also involved in merchant banking.
BRAC Bank that has 36 branches and some 500,000 customers made Tk 126 crore profit in 2007. The bank also emerges as a leader in SME financing in the country by disbursing over Tk 4,000 crore. The bank has also planned to go high with personal banking.
The bank has also huge ATMs (Automated Teller Machine) and POS (Point of Sales) network.
sajjad@thedailystar.net