The regulator in its observation said the move to buy shares of their own company in exchange of the listed company’s asset would benefit only the two individuals
buy shares of its sister concern, Shepherd Jeans Ltd, which it says will violate securities rules.
The Bangladesh Securities and Exchange Commission (BSEC) on November 14 issued a directive asking Shepherd Industries Chairman Chung Wen Kuei and its managing director Kao Wen Fu to refrain from buying their sister company’s shares.
Earlier, on October 24, the board of directors of Shepherd Industries decided to buy 1.55 crore shares — each priced at Tk10 — of Shepherd Jeans. The share price was fixed considering the lands, buildings, and machinery of Shepherd Jeans.
The regulator in its observation said the move to buy shares of their own company in exchange of the listed company’s asset would benefit only the two individuals.
It said that the TIN, trade licence, VAT registration number, fire licence number and environment clearance certificate of Shepherd Jeans Limited, incorporated on April this year, were still under process.
Shepherd Industries Chief Financial Officer Ataur Rahman told Dhaka Tribune: “We are going to buy the asset according to the law. Now, since the Commission has banned, we will refrain from purchasing it."
Shepherd Industries was listed with the Dhaka Stock Exchange in 2017 with paid-up capital of Tk136 crore and authorized capital of Tk190 crore. Each share of the company closed at Tk33.10 yesterday at the DSE.
The sponsor-directors of the Shepherd Industries Limited hold 51.48% stake in the company, while institutional investors hold18.49%, foreign investors 19.84% and general investors 10.19% shares of the company.
The company's four shareholders directors are Chung Wen Kuei, Kao Wen Fu, representative of Eternal Flame Int’l Co. Inc Yang Ming Te and representative of Ever Priority Limited Lin Chih-Wen.
All directors are from Taiwan. Chung Wen Kuei is chairman of the Shepherd Industries. He hold 1,320,000 shares of this company.