ICB Islamic Bank has stopped talking about selling majority of its shares to the Investment Corporation of Bangladesh after asking for an independent audit of the financially-troubled bank.
“We want to buy the majority shares of the ICB Islamic Bank. But it seems that they are not interested after asking for an independent audit,” ICB Chairman Dr SM Mahfuzur Rahman told the Dhaka Tribune yesterday.
“They (the management of ICB Bank) have stopped communication with us,” he said.
ICB Islamic Bank has continued to face financial troubles and the acquirement of the bank’s ownership by the state-run ICB may raise the hopes of recovery. However, the Bank and Financial Institutions Division is examining the proposal of majority shares purchase by the ICB. The proposal will be placed to Finance Minister AMA Muhith for his consent.
ICB will acquire 52.76% shares of the bank now owned by the Switzerland-based ICB Financial Group Holdings AG, a company listed with the London Stock Exchange.
“ICB in principle has decided to buy the shares of the bank after an independent audit,” said an official of the division.
According to the sources, the shares price has been agreed at Tk8 each against the face value of Tk10.
On Thursday last, the bank’s shares in the Dhaka Stock Exchange was traded at Tk6.30 each.
At a recent meeting, the board of directors of the ICB empowered its Managing Director Fayekuzzaman to sign a Memorandum of Understanding (MoU) with the bank.
Sources said the central bank has agreed to offer all kinds of cooperation to the ICB to acquire the shares of the bank. The Orion Capital Ltd, a potential strategic partner for the acquisition, has sent a draft MoU to the ICB.
Sources said the ICB Financial Group Holdings AG, a sponsor shareholder of the bank, in its MoU said the shares will be sold on “as-is-where-is” basis.
Selling price of the shares will remain fixed at Tk8 which should not be changed after due diligence.
It also wanted payment of the value of 10% shares it was disposing of before due diligence and the rest 90% be paid before the signing of the agreement as proof of fund.
