Two RSRM directors to sell SBAC Bank’s 70 lakh shares
Earlier, RSRM Managing Director Maksudur Rahman had sold 1.75 crore shares of the bank
Two directors of loan defaulter Ratanpur Steel Re-Rolling Mills (RSRM) have declared to sell about 70 lakh shares of South Bangla Agriculture and Commerce Bank (SBAC) out of their holdings.
The two RSRM directors - Mizanur Rahman and Shamsun Nahar Rahman - want to sell their holdings in the block market of the Dhaka Stock Exchange (DSE) to pay off the debt of the steel maker and resume manufacturing, according to sources at the stock market regulator.
According to the DSE, Mizanur Rahman will sell 35.56 lakh shares and Shamsun Nahar Rahman will sell 33.82 lakh shares of SBAC Bank within the next 30 days.
Keep updated, follow The Business Standard's Google news channel
Earlier, RSRM Managing Director Maksudur Rahman had sold 1.75 crore shares of the bank.
The re-rolling mill has been shut since December 2020 as the power supply was cut off over Tk40 crore in dues. Besides, the company had a raw material and working capital crunch.
Maksudur Rahman was the director of the bank till 2020 and lost the post subsequently due to defaulted loans. His son Mizanur Rahman and wife Shamsun Nahar Rahman are the sponsors of the bank.
SBAC Bank shares held by them are locked-in for three years, as the bank was listed on the bourse in 2021. However, the stock regulator gave them a conditional go-ahead in selling the bank stake.
According to sources at the Bangladesh Securities and Exchange Commission (BSEC), their bank stake sale includes the stipulation that they will lend the money to RSRM and its subsidiary Modern Steel as an interest-free loan. This loan could be spent on power dues, factory repairs and maintenance and raw material purchase.
The BSEC must be kept updated regularly about the spending.
According to the conditions, the shares will remain locked-in till August 2024 after the sale is completed.
