Can National Tea now open subscriptions for placement shares?
National Tea Company shareholders are in a confusion whether the ongoing legal complexities will allow them to subscribe to the fresh shares on time or if the uncertainties will persist.
The chamber judge at the Appellate Division of the Supreme Court on Monday stayed a High Court order that had halted the company's fresh share issuance.
Now, National Tea has no bar to proceed with its pre-announced subscription for fresh shares among all its existing shareholders, unless a different verdict is delivered by the full bench of the Appellate Division, said Barrister Sayed Mahsib Hossain who along with Barrister AM Masum represented the securities regulator at the court.
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This was still a sub-judice matter, argued Barrister Kazi Ershadul Alam, a lawyer for National Tea shareholder Md Jakir Hossain Sarkar whose petition at the company court last month halted the company's fresh share subscription two weeks after the record date.
Jakir, who owns only 10 shares of the company, challenged the company scheme approved by the Bangladesh Securities and Exchange Commission (BSEC) for issuing fresh shares worth around Tk280 crore as it did not treat all existing shareholders equally.
At Tk119.53 per new share, the government and its entities were offered to buy 4.43 fresh shares against each existing share, while non-government sponsor-directors were offered to buy 3.21 shares against each share and the least 2.85 shares against one were offered to the general public.
The special arrangement was approved eying 51% government shareholding at the company and the BSEC used its special power to supersede other laws for that, according to its lawyers.
Whatever, it was painful for the National Tea shareholders that after the record date their stock price dropped in adjustment with the upcoming increased number of shares and now the share issuance faces uncertainties.
Barrister Kazi Ershadul said the matter would go to the Appellate Division's full bench after the vacation that would end on 9 July and his team would decide the next move based on the client's instruction.
National Tea placement shares subscription was set to open on 10 July and end on 10 September.
