BRB’s growing interest in state-owned firms

The group acquires 26.89% shares of Renwick Jajneswar & Company after it buy 18% of Eastern Cable’s shares

Just a few weeks after getting four seats at state-owned Eastern Cable Limited's (ECL) board, senior management officials of BRB group are now going to sit on the board of another state-owned listed company, Renwick Jajneswar & Company (BD) Limited, after acquiring 26.89% of its total shares.

Of the 2,000,000 shares of Renwick Jajneswar, BRB Cables hold 175,055 shares, BRB Polymer holds 164,040 shares, BRB Cable Chairman Md Mozibar Rahman holds 126,046 shares, Managing Director Parvez Rahman holds 14,686 shares, Vice Chairman Selima Begum holds 12,836 shares, and MRS Industries—a sister concern of BRB—holds 45,197 shares.

The group now owns a total of 537,860 shares of Renwick Jajneswar.

As a state-owned company, 51% of Renwick Jajneswar's shares are owned by the government, while stock market investors own the remaining 49%_of which 17.38% is owned by institutional investors and 31.62% by general shareholders, as per data on Dhaka Stock Exchange's (DSE) website.

According to rules set by the Bangladesh Securities and Exchange Commission (BSEC), any individual or institution is eligible to become a director of a listed company if they hold a minimum of 2% share of the company.

BRB recently proposed four names for the directorship posts on Renwick Jajneswar's board_Md Mozibar Rahman and Parvez Rahman representing BRB Cables, Mofizur Rahman representing BRB Polymer, and BRB Director Shamsur Rahman representing MRS Industries.

Speaking to the Dhaka Tribune, BRB Chairman Md Mozibar Rahman, said: “The company [Renwick Jajneswar] currently has no external representatives on the board. As an individual investor, I have every right to buy shares in a company within the legal framework and am legally eligible to become a member of the board.”

Executive Director of BRB Cable Mofizur Rahman opined that their expertise "can help the company make higher profits" and "run more efficiently".

Located at Thanapara, Kushtia, Renwick Jajneswar & Co (Bd) Ltd is primarily engaged in the manufacture and trade of sugar products in Bangladesh and abroad.

The company owns and operates sugar mills in the country that produce raw sugar, liquid sugar and refined sugar from sugarcane and sugar beets. The products are marketed and sold in Bangladesh and abroad in cooperation with its partners and affiliates.

It is a subsidiary company of Bangladesh Sugar and Food Industries Corporation, and got listed on the DSE in 1989.

BRB Cable Industries recently bought nearly 18% shares of Eastern Cables, a state-owned loss-making firm listed on the stock market.

BRB Cable Chairman Md Mozibar Rahman holds 5.66% shares, BRB Cables Executive Director Mofizur Rahman holds 4.96%, while directors Emadadul Haque and Shamsur Rahman hold 5.10% and 2.04% shares respectively.

BRB Cable now owns nearly 40% of the total shares in the cables sector.

Established in 1978, BRB Cable Industries is now a leading manufacturer of XLPE and PVC insulated LT and HT cables, FRLS cables, house and appliances wiring cables, telecommunication cables, aluminium overhead conductors, and marine cables.

BRB Cable's factory is situated at the Bangladesh Small and Cottage Industries Corporation (BSCIC) Industrial Estate, 5 km from Kushtia town.
Source: https://www.dhakatribune.com

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