Akij eyes big profits from purchase of Malaysian firm

Akij Jute Mills Ltd has proclaimed the prospect to make $83.06 million in 10 years from the overseas purchase of Malaysian fibreboard manufacturing firm Robin Resources and its subsidiary Robina Flooring. The company is also promising to repatriate $29.90 million from the overseas equity investment within the time frame. The prospects were highlighted in a report of the Bangladesh Bank Performance Evaluation Committee (PEC). The Financial Institutions Division is likely to send the PEC report to the cabinet committee on economic affair for its consent today. Finance Minister AMA Muhith will preside over the meeting. Earlier, a total of three leading Bangladeshi companies applied to make equity investments overseas. Scrutinising the proposals, the PEC gave its recommendation for Akij’s proposal to remit $20 million to Malaysia for buying the fibreboard and wood composite manufacturing firm. The report of the evaluation committee said the Akij Jute Mills, a concern of Akij Group, will also return its investment of $20 million within three years after the acquisition of Robin Resources. The PEC also levied 13 conditions, including creating employment opportunities for Bangladeshi workers in the country of investment and remitting the profit back to Bangladesh, on Akij Jute Mills. The PEC recommendation was passed by the committee’s Executive Director Ahmed Jamal. Under the Foreign Exchange Regulation Act, overseas investment is not permitted for resident Bangladeshis. If the Akij Group investment comes through, it will break open new grounds in foreign trade for the country. Robina Flooring made a profit of $7.84 million in 2016.