Thermax Textile to exit SBAC Bank
As per the bank’s disclosure, Thermax Textile will sell 3.48 crore of its 3.51 crore shares of the lender at the prevailing price
Thermax Textile Mills Limited – a concern of Thermax Group – is set to exit SBAC Bank as it has announced its intention to sell its 99% stake in the private sector lender, according to the Dhaka Stock Exchange (DSE).
As per the bank's disclosure, Thermax Textile will sell 3.48 crore of its 3.51 crore shares of the lender at the prevailing price in the block market through the DSE within the next 30 days.
Abdul Kadir Molla, chairman of Thermax Textile and founder of Thermax Group, currently holds a directorship in the bank. His wife Nasima Begum served as a director in the bank, nominated by Thermax Textile, until last year.
Additionally, another former director, Mohammad Nawaz, has announced his intention to transfer 70.65 lakh SBAC Bank shares to his wife Sufia Begum as a gift.
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Following these announcements, SBAC Bank's shares fell by 2.20%, closing at Tk8.90 on Sunday. Over the past five sessions, its share price has plunged by more than 11%.
Attempts to contact Abdul Kadir Molla for a comment via mobile phone were unsuccessful, as his phone was found to be switched off.
According to the bank's IPO prospectus, Thermax Textile Mills purchased placement shares of the bank in 2016. It acquired 2.12 crore shares in cash at a face value of Tk10 each, with the remaining shares received as stock dividends.
Abdul Kadir Molla holds 3.51 crore shares in the bank, having bought 2.12 crore shares in cash and received the rest through stock dividends.
Since the bank's founding in 2013, SM Amzad Hossain served as the chairman of South Bangla Bank until he became embroiled in financial scandals in 2021. His acquaintance Captain M Moazzam Hossain and wife Begum Sufia Amjad were also named directors of the bank.
Under Amzad's leadership, the bank was listed on stock exchanges in July 2021. Later, a Bangladesh Bank investigation uncovered evidence of corruption and money laundering involving SM Amzad Hossain and Captain M Moazzam Hossain.
In March 2021, the Bangladesh Financial Intelligence Unit (BFIU) froze the bank accounts of Amjad, his wife Sufia Amjad, and daughter Tazri Amjad, on money laundering allegations.
On 19 August 2021, the Anti-Corruption Commission (ACC) decided to investigate the allegations against Amjad Hossain and Captain M Moazzam. According to the anti-corruption watchdog, Amjad allegedly embezzled a significant sum of depositors' money.
In September 2021, he stepped down as the bank's chairman, citing personal reasons. Later, his wife and Captain M Moazzam also resigned from their respective roles in the bank.
After Amzad's departure, the bank's board elected Abdul Kadir Molla as chairman. In 2023, Molla stepped down from the chairman position, and former MP Abu Zafar Mohammad Shofiuddin was elected to fill the vacant post.
After Amzad's corruption was exposed, SBAC Bank's corporate sponsor and former director, Hazi Shakhawat Anwara Eye Hospital Limited, sold its entire holding of 3.48 crore shares in the bank, and former director Tahmina Afroz also sold 3.48 crore shares.
Tahmina is the wife of Anwar Khan, the founder of Anwar Khan Modern Medical College Hospital, and they co-own Hazi Shakhawat Anwara Eye Hospital.
In 2020, the SBAC board appointed a nominee director from the hospital, but later the director was withdrawn from the bank.
Additionally, RSRM Group Chairman Maksudur Rahman, Director Mizanur Rahman, and Shamsun Nahar Rahman sold their entire holdings in the bank.
The shares were sold to repay a loan owed by the RSRM Group, as required by the securities regulator's conditions.
As of the 31 July shareholding report for SBAC Bank, sponsor-directors held 66.41% of the shares, institutional investors 16.74%, and general investors 16.85%.
