Minori Bangladesh enters into Fu-Wang Foods’ board
The BSEC approved the acquisition in January this year
Highlights
- Minori acquired 7.61% Fu-Wang Foods' stake with Tk10cr
- Former directors will get Tk4 crore
- Tk6 crore will be used to tackle Fu-Wang's financial anomalies
- Also, Minori will inject Tk20 crore fresh fund in Fu-Wang
- Minori's 3 new directors replaced Fu-Wang's 3 directors
Minori Bangladesh — a subsidiary of the Japanese farming company Minori Co Ltd — has entered into the board of publicly listed Fu-Wang Foods by acquiring a 7.61% sponsor directors stake at the food and allied company.
The company nominated its three new directors - Miya Mamun, Md Afzal Hossain, and Sidratul Mahabub Hasan - in Fu-Wang's board who will replace the food company's existing Managing Director Arif Ahmed Chowdhury and Directors Afsana Tarannum, and Lubaba Tabassum.
Keep updated, follow The Business Standard's Google news channel
The Bangladesh Securities and Exchange Commission (BSEC) approved the acquisition in January this year.
According to sources, the acquisition cost Minori Tk10 crore. Of the amount, Fu-Wang's former directors will get Tk4 crore, and Tk6 crore will be invested in the company to deal with the financial anomalies regarding its inter-party transaction with its subsidiary.
In addition, Minori will inject a fresh investment of Tk20 crore to run Fu-Wang Foods.
Md Afzal Hossain, one of the new directors in the company, told the Business Standard, "Fu-Wang Foods has good potential, but it needs proper management."
"After acquiring the company, technical and qualitative changes will be made to make it better."
"As per investment plan, the monthly turnover of the company will be increased to Tk15-20 crore, which is currently around Tk9-10 crore, and we will invest as much as it needs to increase this turnover," he added.
Founded in 1997, Fu-Wang Foods Limited was fully owned by foreign investors who wanted to do business in the food processing industry in Bangladesh.
It got listed on the stock exchanges in 2000. But later, the foreign investors sold the company to local investors.
Arif Ahmed Chowdhury has been the managing director since then, and his family owns 8.75% shares of the company.
Since its inception, the company has had confectionery items: cakes, bread, biscuits, toasts, snacks, and instant noodles.
According to sources, Fu-Wang Foods has a significant portion of the market share in the industry and also has good growth potential.
Due to a lack of proper management, the company fell into crisis and non-compliance with the securities laws and rules.
Seeing Fu-Wang's huge potential, Minori Bangladesh decided to invest in the company.
Earlier, Minori had acquired a stake in another listed firm - Emerald Oil - and invested around Tk50 crore separately.
