Crown Cement directors to gift Tk35.55cr in shares to family members
Two sponsor directors of Crown Cement, one of the country's leading cement manufacturers, have announced plans to gift a total of 74.70 lakh shares to their family members.
Of these, sponsor director Md Alamgir Kabir will transfer 59.70 lakh shares, while another sponsor director Mohammed Jahangir Alam will transfer 15 lakh shares.
On Tuesday, the company's share price closed at Tk47.60 on the Dhaka Stock Exchange. Based on this price, the combined value of the shares to be gifted amounts to approximately Tk35.55 crore.
The share transfers will be carried out outside the trading system of the exchange and are expected to be completed by 30 April 2025.
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According to the disclosure, Alamgir Kabir will transfer 29.70 lakh shares to his son Solaiman Kabir, 15 lakh shares to his wife Kamrun Nahar, and 5 lakh shares each to his daughter Raisa Kabir, son Raihanul Kabir, and daughter Nusaibah Kabir. All recipients are general shareholders of the company.
In a similar move, Mohammed Jahangir Alam, another sponsor director of Crown Cement, has also announced his plan to transfer 15 lakh shares of the company to his son, Salehin Musfique Sadaf.
This transfer will also be executed as a gift outside the trading system of the exchange within the same timeframe. Sadaf is also a general shareholder of the company.
Market insider's view the share transfers as a strategic move to gradually involve family members in the business, potentially grooming them for future leadership roles as company directors.
In the second quarter of the current fiscal year, the company made net revenue of Tk803.55 crore which was Tk711 crore in the same period of the previous fiscal year.
In this quarter, the company made net profit of Tk18.85 crore, which was 48% lower from Tk36.23 crore compared to the same period of the previous year.
In the October-December quarter, its earnings per share was Tk1.27, which was Tk2.44 a year ago.
Its net asset value per share stood at Tk56.43 at the end of December 2024.
The company stated that its earnings per share decreased due to additional depreciation from new capacity expansion, interest charges on long-term loans taken for the expansion, an increase in electricity prices, and higher investments in advertising and manpower to grow market share.
The net operating cash flow per share, however, increased due to improved cash collection, the impact of non-cash expenses such as additional depreciation from the new 6th unit, and extended credit terms from suppliers.
The company recommended a 21% cash dividend for their shareholders for FY24.
As of March 2025, Crown Cement's shareholding structure stood at: sponsor-directors 65.33%, institutional investors 18.34%, foreign investors 0.05%, and general investors 16.28%.
