Bay Leasing to buy Asia Insurance’s shares following BSEC ultimatum
After buying the shares, the company's holdings with Asia Insurance will be 2.03 percent
Bay Leasing and Investment Ltd, a non-banking financial institution, intends to buy 1.70 percent shares of Asia Insurance Ltd at the Dhaka Stock Exchange (DSE) within the next 30 days.
Bay Leasing is a corporate sponsor of Asia Insurance and has decided to buy the shares in order to fulfill the minimum requirement of 2 percent shareholding. Currently, it holds only 0.33 percent shares of Asia Insurance.
According to the Bangladesh Securities and Exchange Commission, all companies that do not hold minimum 30 percent shares jointly and minimum 2 percent shares individually, of the paid-up capital, will have to buy the rest of the shares within 60 working days from July 29, 2020.
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Otherwise, the regulator will take necessary measures against those companies as per the securities laws.
Hence, following the BSEC directives, Bay Leasing intends to buy the shares at the prevailing market price. After buying the shares, the company's holdings with Asia Insurance will be 2.03 percent.
Tarik Suzat is on the board of Asia Insurance as a director nominated by Bay Leasing.
The board of directors of Asia Insurance recommended a 10 percent cash dividend for its shareholders for the 2019 financial year.
However, the final approval of the dividends will come during an annual general meeting slated for September 20.
Asia Insurance reported earnings per share (EPS) of Tk1.03 in the first half of this year. Its EPS was Tk1.60 in the 2019 financial year.
The closing price of the company's shares was Tk34.50 per share on Sunday at the DSE. It is the company's highest share price in the last one year.
The company's paid up capital is Tk47.06 crore. Out of its total shares, sponsors and directors hold 44.93 percent, institutional investors 12.11 percent and general shareholders hold 42.96 percent shares.
