Aziz Mohammad Bhai to buy Tk40cr Olympic Industries shares
Aziz Mohammad Bhai, chairman of Olympic Industries, has expressed his interest in acquiring 27 lakh shares as part of a strategy to augment his ownership stake in the company.
According to a stock exchange filing on Monday, he will buy the shares, constituting 1.35% of the company's total stake, from the secondary market within the next 30 working days.
The estimated cost of this acquisition will be around Tk40 crore at the Dhaka Stock Exchange (DSE) at the prevailing market price.
Currently, Aziz Mohammad Bhai holds a substantial stake of 15.53% in the country's leading automatic biscuit manufacturer.
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Its shares closed 1.25% higher at Tk146.10 each at the Dhaka bourse on Monday.
Company Secretary Mintu Kumar Das told The Business Standard that the chairman's decision to purchase the shares is his personal matter and is aimed at enhancing his stake in the company.
However, discussions with officials at various levels within the company reveal that there is a plan to reduce the free-float shares in the public market by purchasing shares from the secondary market. The ongoing share purchases are part of this strategic initiative.
At present, sponsors and directors collectively hold a 44.66% stake in the company, leaving 55.34% of the shares as free-float on the stock exchange. Earlier, on 23 July last year, Olympic Industries appointed Aziz Mohammad Bhai as its chairman. The company also appointed his sister Nurjehan Hudda as the managing director on 19 October. Both have been serving as directors for the company for a long time.
The two key leadership positions at Olympic Industries fell vacant due to the unfortunate demise of the company's chairman Mohammad Bhai in 2018 and the managing director Mubarak Ali in 2023.
In June last year, the company appointed Asar Aziz M Bhai, son of Aziz Mohammad Bhai, as a director nominated by Ambee Limited, which holds a 2% stake in Olympic Industries.
Additionally, Ahad Mohammad Bhai, son of Aziz's late brother Raja Mohammad Bhai, was appointed as a shareholder director.
Meanwhile, Olympic Industries achieved record revenue in fiscal 2022–23, despite the contraction in public expenditure caused by rampant inflation.
According to its financial statement, earnings grew 20% year-over-year to Tk2,578 crore, the highest in the company's history, thanks to its diversified portfolio.
Over the past three years, Olympic Industries has invested around Tk155 crore to diversify its product portfolio and expand its business.
However, in the July-December period of fiscal 2023-24, its revenue fell by 6% to Tk1,285 crore. By the end of the first half of this fiscal year, Olympic Industries recorded a net profit of Tk115 crore, marking a 10% increase compared to the same period in the previous year.
The company had paid a 60% cash dividend to its shareholders for fiscal 2022-23, which was 45% a year ago.
