ICB acquires Tk338cr worth of Unilever Consumer shares in 7 months

In a strategic move to bolster its portfolio, the Investment Corporation of Bangladesh (ICB) has acquired a 7.13% stake, worth approximately Tk338 crore, in Unilever Consumer Care Limited between April and November 2024.

The state-owned non-bank financial institution, primarily tasked with supporting the capital market, has long served as a corporate director on the board of the multinational company. 

It purchased a total of 16.89 lakh shares from the secondary and block markets on the Dhaka Stock Exchange (DSE).

With the latest purchase, the ICB now holds a 10.82% stake in Unilever Consumer, which is involved in the business of health drinks, including brands like Horlicks, which Unilever acquired from GSK in 2020.

According to the DSE, ICB purchased 0.37 lakh shares of Unilever Consumer in April last year, 8.55 lakh shares in May, 2.53 lakh shares in June, 0.53 lakh shares in July, 1.21 lakh shares in August, 3.57 lakh shares in September, and 0.10 lakh shares in November.

In October last year, however, ICB sold 7,138 shares of Unilever Consumer.

In April last year, Unilever Consumer shares were trading at Tk2,003, and by August, they had surged 61% to reach Tk3,231. 

At the close of today's session, the shares were priced at Tk2,554.60.

This acquisition underscores ICB's commitment to expanding its investments in high-growth sectors and trusted brands, according to its officials.

Earlier, in July last year, the ICB decided not to invest in junk stocks that are traded under the Z category. It has also taken various reform steps, including forming an investment policy.

Unilever Consumer Care, known for its robust market presence in the health drinks sector with the flagship brand Horlicks, stands to benefit from this enhanced backing, while the ICB is poised to leverage the synergies from this collaboration to deliver value to its shareholders, they added. 

Due to the increase in ICB's stakes, the holdings of sponsors and directors in Unilever Consumer Care exceeded 90%, while the public portion decreased to less than 10%. 

ICB's consolidated loss for the period stood at Tk75.28 crore in the July-September quarter of this fiscal year, a significant improvement from Tk236.52 crore during the same period last year, according to its price-sensitive statement filed with the DSE.

At the end of the September quarter, its consolidated loss per share was Tk0.87, which was Tk2.73 in the same quarter the previous year.

The company said in its statement that loss decreased due to an increase in capital gain from the sale of securities and an increase in dividend income.

Meanwhile, Unilever Consumer Care paid a total cash dividend of 300% for the year 2023, during which its net profit surged by 32%. This dividend distribution represents 60% of the company's total profit for the year. 

According to the financial statement, Unilever Consumer's net profit rose to Tk96.15 crore in 2023 from Tk73.04 crore a year earlier.