Following the takeover of Emerald Oil last year, Japanese farming group Minori Co Limited’s local venture Minori Bangladesh Ltd can now take control of Fu-Wang Foods Limited, however, Minori has to deposit an initial investment of Tk20 crore in a different bank account in the name of the company, and be willing to take responsibility for all its liabilities.
Bangladesh Securities and Exchange Commission (BSEC) at a meeting on Thursday concluded to allow Minori Bangladesh Limited to take control of Fu-Wang Foods Limited.
The commission also concluded that the existing directors would have to return one million shares of Fu-Wang Foods from their holdings, which they had sold from the company’s suspense account, and sponsor-directors will have to pay dues worth Tk6.5 crore to the company account.
A BSEC official confirmed the matter to Dhaka Tribune.
Earlier in July last year, the BSEC appointed five independent directors to restructure the board of directors of Fu Wang Foods following its rule violation and failing to comply within a given time.
The commission had asked the company to either comply with 30% shareholding rules or completely shuffle the board, as sponsor-directors of the company previously only held 8.75% shares.
“Minori’s control over Fu-Wang will improve business and governance of the company,” Shaikh Shamsuddin Ahmed, the BSEC commissioner told Dhaka Tribune on Monday.
“We have seen their success with Emerald Oil with it undergoing production and I definitely see them under that dimension of incubating the same for Fu-Wang,” the commissioner added.
Minori Bangladesh Limited, earlier took over flailing company Emerald Oil promising to invest Tk50 crore to help the company recover, after it had started to collapse when the founder fled the country a few years ago after facing a corruption trial due to his loan default case with Basic Bank.
Since then, the company has been left inoperative and the shareholders suffered huge stock price drop with no dividend payments in four years.
In March of 2020, the securities regulator reconstructed Emerald Oil's board by appointing five independent directors coming from reputable professional backgrounds.
Japanese firm Minori Bangladesh Limited joined the company’s board of directors with an 8% shareholding and was in talks to get more.
In July 2021, Minori took over Emerald Oil to revive the business of the non-performing company.
Emerald Oil started commercial production on January 9 after Minori acquired the listed company.
The company was founded in 2008, began production of "Spondon" branded rice bran oil in 2011 and got enlisted in the stock market in 2014.
As soon as the founder's loan scam came to light the company's operations and value in the stock market started to collapse.
Minori’s Bangladesh operations are based in Tangail while its Japanese operations are based in Chiba prefecture, next to Tokyo.
The company focuses mainly on organic crops, including rice, vegetables and fruits, and also partners with local farmers in the region to support their production efficiency and to buy their harvests.
The products offered by Fu-Wang Foods include bread, biscuit, cake, toast, wafer bar, chocolate, instant noodles, drinking water, carbonated drinks and energy drinks.
Founded in 1997, Fu-Wang Foods was listed in July 2000 on both stock exchanges.
