Delisted Jago Corp sets sights on business comeback under new owners

Infograph: TBS

Jago Corporation, which has been delisted from the mainboard of stock exchanges since 2009, hopes for a comeback to the business under its new ownership – Younus Group. 

The business group has acquired the firm through the purchase of over 26% of its shares from its sponsor-directors for Tk2.35 crore, with a plan to resume operations. 

The new owner also expects to bring Jago Corporation, which was engaged in assembling and marketing water purifiers, to the small-cap board of the Dhaka Stock Exchange (DSE).

Previously, business conglomerate Younus Group acquired Perfume Chemical Industries in 2023 and Sonali Paper and Board Mills in 2006 from the OTC board.

The transfer was subject to submitting a strategic plan regarding fundraising, resuming production, and executing necessary share transfers, according to a notification by the Bangladesh Securities and Exchange Commission. 

In December last year, the purchase deal was executed, according to company officials. Though the company did not disclose the share purchase price, officials said the new owner bought each share at a face value of Tk100. After acquiring, the new owner split each share into ten, as the face value was Tk100 on the OTC. 

Now, to fulfill the regulator's requirement, the new owner has decided to issue another 90 lakh ordinary shares at Tk10 to increase paid-up capital for BMRE and working capital. 

After the share issuance, the paid-up capital of Jago Corporation will increase to Tk18 crore from the existing Tk9 crore. The new shares will be offered to existing shareholders in cash consideration against share money deposits as investments by all shareholders, according to the company.

Md Atikul Islam, company secretary of Jago Corporation, told The Business Standard, "The new management acquired around a 26% stake. Now, we are working to resume its operation as soon as possible."

According to the CSE, after executing the share purchase deal, Younus Group took control of the board of Jago Corporation, with Mohammed Yunus as chairman, Mahfuza Younus as director, and Mohammed Rashedul Islam as managing director.

According to the CSE, on 20 November last year, Md Rabiul Islam, one of the sponsor-directors of Jago Corporation, decided to sell his entire holdings of 2,15,125 shares, equivalent to 23.90%, to Mohammed Yunus and Mahfuza Younus within 30 working days — 1,15,125 shares or 12.79% and 1 lakh shares, or 11.11%, respectively.

Mohammed Rashedul Islam purchased 20,000 shares, equivalent to a 2.22% stake, from Md Sharif Uddin Khandakar, one of the directors of Jago Corporation.

Md Rabiul Islam said, "We left the ownership after selling the entire stake as we are facing a working capital shortage to run the business. That's why we sold the sponsor-directors' portion at Tk100 each."

He added, "We went to banks for financing to run our business, but did not get financing, which led to selling the entire stake in the company."