Multinationals to pass decision on offloading shares to parent companies

The Ministry of Industries (MOI) has asked multinational companies, including Unilever Bangladesh Ltd, to place proposals to their parent firms to offload their shares, an inside source has confirmed. The decision was taken at a meeting with representatives of multinational companies presided over by MOI Senior Secretary, Md Mosharraf Hossain Bhuiyan. In addition to Unilever Bangladesh, Sanofi Bangladesh Ltd and Novartis Pharma Ltd were also present. The source said the ministry will inform all the stakeholders and arrange a high-level meeting for offloading the shares, if the Financial Institutions Division takes an initiative regarding the move. In the meeting, the representative of Unilever Bangladesh Ltd said the ministry’s proposal cannot be fulfilled unless Unilever’s parent company in the United Kingdom allows it. “The proposal needs to be approved by the parent company’s board,” he said. “We will give a written statement to the ministry after our managing director gives his consent.” The representative said Unilever Bangladesh does not need extra funds from the stock market due to its nature operation in Bangladesh, and that it is also not possible to offload its shares in the stock market because there is a shortage of existing paid-up capital. The Novartis Pharma Limited representative expressed his company’s interest in offloading their shares but also said they do not have enough paid-up capital. After issuing two right shares, Novartis’ paid-up capital stands at Tk11.75 crore. “However, Novartis will place the proposal to offload shares as per the ministry instructions,” the representative said. The representative from the Bangladesh arm of Sanofi, a French multinational pharmaceutical company, said the Bangladesh government holds a total of 45% of their shares. “We have no choice. We have to place the proposal in our next board meeting with the parent office,” he said. No representative from Karnaphuli Fertiliser Limited, a company owned by a Japanese firm, attended the meeting so its decision was not discussed. Earlier, Finance Minister AMA Muhith said at a meeting that the government was considering the possibility of offloading 10% of its shares in Unilever Bangladesh Limited. “The government owns a 39.25% share of Unilever, but Unilever is not interested in offloading it in the local stock market,” he said. “Multinational companies, like Unilever, are also not interested to increase their share in the market, although they are making huge profits here.” According to the banking division, the government currently also holds 45.32% of Sanofi Bangladesh Limited, 12.92% of Novartis Pharma Limited, 51% of Fisons (Bangladesh) Ltd, 12.92% of Organon Bangladesh Ltd, 0.64% of British American Tobacco, and 43.88% of Karnaphuli Fertiliser Limited. It also has 48% stake in Hoechst Bangladesh Ltd, 21.88% in Industrial Promotion Development Corporation (IPDC) Finance Ltd, 20% in Mirpur Ceramics Works Ltd, and 3.79% in Reckitt Benckiser Bangladesh Ltd.