The Bangladesh Securities and Exchange Commission on Thursday decided to allow Minori Bangladesh Limited, an arm of Japanese farming group Minori Co Limited, to take control of Fu-Wang Foods Limited.
The BSEC made the decision at a commission meeting on Thursday.
Earlier in July 2021, Minori took over Emerald Oil to revive the business of the non-performing company. Emerald Oil started the commercial production from January 9 after the Minori acquire the listed company.
BSEC commissioner Shaikh Shamsuddin Ahmed told New Age that the commission decided to allow Minori to take control of the board of Fu-Wang Foods Limited.
To acquire the company, Minori must provide Tk 10 crore as initial investment to the company, and the amount would be deposited in a separate bank account, he said.
The current sponsor-directors will have to pay dues of Tk 6.5 crore to the company account, he said.
In addition, the existing directors have sold around 10 lakh shares of Fun-Wang Foods from the company’s suspense account.
The commission decided that the directors would return those shares from their holdings, Shamsuddin said.
Minori would be liable for all the liabilities of the company.
It will improve business and governance of the company, he said.
The current directors may share board with holding 2 per cent shares of the company, he also said.
On July 13, 2021, the BSEC restructured the board of directors of Fu Wang Foods by appointing five independent directors due to violating rules.
The sponsor-directors of the company held only 8.75 per cent shares, and the company was asked to recast its board or comply with the 30 per cent shareholding rules, but it failed to comply with the instruction within simulative time.
On October 8, the BSEC had also allowed Alif Group to acquire C&A Textiles Limited which kept shut since 2016.
Minori’s Bangladesh operations are based in Tangail while its Japanese operations are based in Chiba prefecture, next to Tokyo.
The company focuses mainly on organic crops, including rice, vegetables and fruits, and also partners with local farmers in the region to support their production efficiency and to buy their harvests.
The products offered by the Fu-Wang Foods include bread, biscuit, cake, toast, wafer bar, chocolate, instant noodles, drinking water, carbonated drinks and energy drinks.
Founded in 1997, Fu-wang Foods was listed in July 2000 on the both stock exchanges.
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