Japanese firm Be Born Co keen to buy 11 lakh Emerald Oil shares
Be Born Co has recently written to the managing director of Emerald Oil in this regard
Japanese firm Be Born Company Limited wants to buy 11 lakh shares of the publicly listed Emerald Oil Industries at the prevailing market price from the public market through the Dhaka Stock Exchange (DSE).
In this regard, Be Born Co has recently written to the managing director of Emerald Oil.
On Sunday, Emerald Oil shares closed at Tk153.5 each. Therefore, the value of the 11 lakh shares will be nearly Tk17 crore.
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Emerald Oil's Managing Director Afzal Hossain told The Business Standard, "After receiving the buy intimation letter from Be Born Co, we sent it to the Bangladesh Securities and Exchange Commission (BSEC) and the Dhaka bourse."
In 2021, Minori Bangladesh — a subsidiary of another Japanese firm Minori Co Limited — got BSEC approval to invest Tk40 crore in Emerald Oil for bringing the company back into production.
Minori Bangladesh's Chairman Mia Mamun told TBS, "Be Born Co is a wholesale business of foods including crude rice-bran oil. It imports crude edible oil from various countries and supplies to big companies."
"Earlier, Emerald Oil signed a Memorandum of Understanding (MoU) with Be Born Co where the former would export oil to the latter. Now, it wants to buy Emerald Oil shares," he added.
The letter, signed by Be Born Co Chief Executive Officer Shingo Miyauchi, to Emerald Oil's MD reads "As one of the major buyers of crude oil produced by Emerald Oil Industries, and to be the company's strategic partner and build a long-term relationship, it will be our privilege to be Emerald Oil's shareholder."
"We are very much keen to invest in Emerald Oil and in this connection, we express our interest to buy 11 lakh shares of the company after complying with all the procedures, and rules and regulations," the letter further reads.
This July, Emerald Oil signed an MoU with Be Born Co to export 3,000 tonnes of crude oil annually.
After a hiatus of five years, Emerald Oil's operations resumed in January 2022. It paid a 2% cash dividend to its shareholders in the fiscal 2021-22.
Although the company is running under the new management of Minori Bangladesh, the lender BASIC Bank is going to auction its mortgaged assets to recover the loan its old owner failed to repay.
The price of Emerald Oil's shares have been increasing abnormally for the last three months.
