Minori Bangladesh Limited, an arm of Japanese farming group Minori Co Limited, will take over non-performing Emerald Oil Industries Limited.
Minori Bangladesh has recently nominated Sidratul Mahabub Hasan as representative of the company to the Emerald Oil board after purchasing around 8 per cent shares of the company.
BSEC chairman Shibli Rubayat-Ul-Islam told New Age that Minori
Bangladesh will take control of Emerald Oil soon as the previous sponsor-directors had fled the company.
The company will invest a fresh Tk 50 crore into Emerald Oil to address the current needs and bring it to operation, he said.
It will also mitigate the outstanding banks loans of Emerald Oil, the BSEC chairman said.
The company will be given shares against the investment of Tk 50 crore, he said.
Earlier on March 2, the BSEC restructured the board of directors of Emerald Oil by appointing five independent directors to the company’s board in a bid to bring the non-functioning company back to business and protect the interests of investors.
Two directors had to be nominated from the shareholders having at least 2 per cent shares of the paid-up capital of the company, the BSEC said in its order.
Emerald Oil, a rice-brand edible oil producer, is not in operation and has failed to declare dividends for shareholders for the last four years.
The previous board of directors did not take any initiative to bring the company back to business over the period of time and the company has failed to declare a cash dividend since 2015, said the regulator.
Minori’s Bangladesh operations are based in Tangail while its Japanese operations are based in Chiba prefecture, next to Tokyo.
The company focuses mainly on organic crops, including rice, vegetables and fruits, and also partners with local farmers in the region to support their production efficiency and to buy their harvests.
Emerald Oil Industries was established in 2008 with a mission to producing edible oil which is a common item needed for the preparation of daily food.
The company made its debut on stock exchanges on March 19, 2014.
Emerald Oil has been producing refined rice bran edible oil Spondon since 2011.
Emerald Oil’s stocks were being traded under the ‘Z’ category since 2018 due to losses incurred and announcement of no dividends.
Share price of the company stood at Tk 10.8 per share on March 21 that jumped to Tk 28.3 a share on June 30 after a reconstitution of the board.
Midway News Team
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