Foreign investors propose to acquire 4 Beximco firms

Infographics:TBS

Highlights: 

• A consortium of foreign investors keen on buying Beximco Pharma, Teesta Solar, Beximco Communications, and Beximco Ltd
• Dubai-based Adsum Capital Management writes to Finance Adviser Salehuddin on behalf of the consortium
• The adviser forwards the letter to the commerce secretary 
•  

A consortium of foreign investors has sent a proposal to the government expressing its interest in acquiring four profitable companies belonging to Beximco Group, including Beximco Pharma and Beximco Limited.

Adsum Capital Management LLC – a Dubai-based financial company – has sent a proposal letter to Finance and Commerce Adviser Salehuddin Ahmed on behalf of the consortium. However, Adsum has not provided any details about the intending investors.

Officials at the finance ministry said Salehuddin Ahmed received the letter on 14 October and then forwarded it to the commerce secretary with instructions "to examine this."

"A consortium of investors has authorised us to submit an Expression of Interest in order to acquire shares in Beximco Group of Companies," reads the letter signed by Anwar Ali Khan, chief executive officer and managing director at Adsum.

"The names of the particular companies are Beximco Pharmaceuticals Ltd, Teesta Solar Ltd, Beximco Communications Ltd (Satellite & DTH License), and Beximco Ltd (Textiles & RMG Division)."

Beximco Pharma and Beximco Limited are listed on the Dhaka Stock Exchange, while Beximco Pharma is also listed on the London Stock Exchange.

When contacted, Ahmed Shayan Fazlur Rahman, the son of Beximco Vice Chairman Salman F Rahman, told The Business Standard, "We at Beximco have not received any such proposal."

Salman F Rahman, the former private industry and investment adviser to ex-prime minister Sheikh Hasina, is behind  bars following the fall of Hasina's government on 5 August.

On 5 September, the High Court, in response to a writ petition, ordered the Bangladesh Bank to attach all the properties of Beximco Group and appoint a receiver for six months to manage the assets.

The group then appealed to the chamber court of the Appellate Division, seeking a stay on the High Court's order. The chamber court, without staying the order, referred the leave-to-appeal for a full bench hearing at the Appellate Division on 28 October.

The Dubai-based financial company has expressed interest in starting negotiations with the government to acquire the Beximco companies known to be highly profitable.

"We would like to put forward the interest of our clients in looking at acquiring assets of particular companies that you and your government may be considering selling or restructuring," stated the Adsum letter, a copy of which has been obtained by TBS.

"Should this align with your government's strategy, we would be grateful to you and your office if you could initiate a dialogue with the Government of Bangladesh to acquire the shares of Beximco Group of Companies on terms and conditions mutually agreed upon."   

Adsum further mentioned that this expression of interest is of course subject to the usual due diligence and valuation processes and the caveat that the companies must be sold as a going concern and not to be under receivership at the time of sale.

It said the offer is non-binding and subject to further due diligence. As you may appreciate, any offers made shall have a number of elements that must be considered, and regulatory and legal formalities must be met through a process of proper due diligence.

The financial company said it shall be pleased to immediately sign and execute a Notification of Award (NOA) to facilitate information sharing and taking the proposal to the next level of due diligence process.

TBS emailed Adsum Capital Management on Tuesday seeking information regarding the proposal, but no response had been received as of yesterday evening.

Commerce ministry officials declined to comment specifically on whether the government would move forward with Adsum's proposal.

Speaking on condition of anonymity, several officials told TBS that the decision would need to be made at the political level. However, they indicated that an inquiry into Adsum would be conducted through the Bangladesh embassy.

Bangladesh Bank Governor Ahsan H Mansur has urged both domestic and foreign buyers not to acquire the properties of the controversial S Alam Group, stating that assets belonging to those who have borrowed from banks and syphoned money abroad will be sold to repay the lenders.

While allegations of money laundering have been made against several industrial groups, including S Alam and Beximco Group, no senior policymakers from the central bank or the interim government led by Professor Muhammad Yunus have publicly addressed the issue of selling Beximco Group's properties.

According to Adsum's website, the company has 30 years of experience in banking, finance, technology, real estate, and investment.
The company is interested in working in various sectors, including aviation, blockchain, Web3, commodities, fintech, gaming, healthcare, hospitality, insurance, MedTech, and merchant services in Bangladesh, the United Arab Emirates, Pakistan, Kenya, Tanzania, South Africa, and Canada.