Major Mannan decides to sell Eastern Insurance shares after 290% price hike
Mannan and his wife will sell 6.59 lakh shares worth Tk7.66 crore
Major (retd) Abdul Mannan and his wife Umme Kulsum Mannan have decided to sell 1.52% shares of Eastern Insurance after its prices soared 290% in the last one year.
As sponsors and directors of the company, they have announced their intention of selling the shares on the website of the Dhaka Stock Exchange (DSE) on Tuesday.
As per the declaration, the duo will sell a total of 6.59 lakh shares worth Tk7.66 crore, which was only Tk1.96 crore a year ago.
Keep updated, follow The Business Standard's Google news channel
Currently, these shares are held by Peninsula Garments, Sunpack Industries and Pioneer Dresses, where Major (retd) Abdul Mannan and Umme Kulsum Mannan are chairman and managing director of the companies.
On 30 June 2020, the price of each Eastern Insurance share was Tk29.80. But despite the pandemic shocks, its share price jumped by 290% to Tk116.20 at the end of Tuesday's trading session at DSE.
After the abnormal price hike, the two directors had transferred 9.91 lakh shares of Eastern Insurance to the Shahjalal Islami Bank to repay the loan.
The Bangladesh Securities and Exchange Commission (BSEC) had earlier issued an order to cancel the directorship of Pioneer Dresses from Eastern Insurance for not complying with the minimum 2% shareholding condition.
Major (retd) Mannan and his wife have more than 20 lakh shares of the insurance company which are held by different companies under the Sunman Group, where they are serving as chairman and vice-chairman, respectively.
Last year, the general insurer had paid a 20% cash dividend to its shareholders.
