ADN Telecom, a telecom infrastructure company listed with the capital market will invest a substantial amount for acquiring another 40 per cent stake in ADN International Gateway (AIG).
ADN Telecom is a publicly-traded IT and telecommunication services provider while ADN International Gateway is a private limited company holding an International Internet Gateway (IIG) license issued by the Bangladesh Telecommunication Regulatory Commission (BTRC).
ADN Telecom and ADN International Gateway are two major concerns of the AND Group. Earlier in 2021, ADN Telecom acquired 40 per cent stake in ADN International Gateway.
This vertical acquisition will increase ADN Telecom’s current shareholding to 80 per cent in ADN International Gateway, making it a subsidiary of ADN Telecom, said the company in a stock exchange filing on Tuesday.
Company secretary Md Monir Hossain said the proposed vertical acquisition would lead to a further growth of both the companies, strengthening their overall position in the market.
ADN Telecom acquired a 10 per cent stake in Shohoj in June this year by investing Tk 120 million as part of its business expansion.
Last month, the company decided to purchase land beside company’s existing 14.13 decimals of land from its related party/associate company under the common directorship worth Tk 115.68 million, excluding the costs for registration and other related expenses, in the capital’s Badda for construction of a multistoried corporate building.
In September this year, the company also decided to acquire a 235-decimal plot of land in Gazipur at a cost of Tk 23 million for future business expansion.
Meanwhile, after a record annual profit for FY23, ADN Telecom’s consolidated first quarter (July-Sept) profit dropped 32 per cent year-on-year to Tk 44.42 million.
Revenue also declined 10 per cent to Tk 298.68 million in July-September this year, according to its quarterly financial statements published on Tuesday.
The company explained that revenue was higher in the same quarter a year ago due to a payment from its client Bangladesh Police, but the service was discontinued.