Three directors to transfer Baraka Power stakes to holding companies
Three directors of Baraka Power Ltd have announced plans to transfer their entire stakes at the company to two holding companies, according to the Dhaka Stock Exchange (DSE).
Directors Ahsanul Kabir, Faisal Ahmed Chowdhury and Nanu Kazi Mohammed Miah will sell a total of more than 1.43 crore shares in the block market, according to the disclosure.
On the other hand, two of the corporate directors of Baraka Power – NRB Ventures (Pvt) Limited and Fusion Holdings (Pvt) Limited – together will buy the same number of shares from the block market.
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Block transactions in the bourses take place beyond the regular trading screen to facilitate large transactions without disrupting the market flow, and buyers and sellers meet there at a negotiated price.
An official of the company told The Business Standard, Baraka Group was founded by some non-resident Bangladeshis (NRBs) in the mid-2000s, and Baraka Power had over 130 of the NRB investors before its listing.
As most of the individuals leave the country, they find it more convenient to hold the listed company shares via holding companies they own.
As a result, the shareholder directors become nominated directors representing their holding companies.
The transfer of individuals' stake to holding companies was a part of the story, said the company official.
Meanwhile, another corporate director Karnaphuli Harbour Limited has expressed its intention to sell 10.45 lakh Baraka Power shares in the block market out of its total holding of 62.69 lakh shares. However, no buyout of the shares by any sponsor or director was announced till Monday.
Baraka Power shares are stuck on the floor price of Tk21.30 at the DSE.
