B Mirror Report: Listed engineering company Dominage Steel Building Systems Limited is set to undergo a major change in ownership structure as Akij Resources Limited plans to acquire a 30% stake from its existing directors.
In a disclosure through the Dhaka Stock Exchange (DSE) on Sunday, Dominage Steel said its board has decided to sell a total of 37.8 million shares through off-market transactions based on negotiations.
The shares will be purchased by Akij Resources along with the company’s current Chairman Faria Hossain and Managing Director Sheikh Jasim Uddin, by acquiring stakes from the existing sponsors and directors.
The company has decided to seek approval from the Bangladesh Securities and Exchange Commission (BSEC) for the share transfer. Once regulatory approval and formal procedures are completed, the new board is expected to take over management and operations.
According to sources, the new management plans to fully resume and expand Dominage Steel’s production activities. It also aims to integrate operations with Akij’s existing steel and infrastructure businesses, which stakeholders believe could improve the company’s performance.
Currently, sponsors and directors hold 30.20% of Dominage Steel shares. After the acquisition, Akij Resources is expected to take effective control of the company.
At present, production at the Savar plant is operational, while the Narsingdi facility remains closed. The new owners are expected to restart and expand operations after the takeover.
Earlier, Akij Resources Group acquired Magnum Steel in Munshiganj for around Tk 4.5 billion following the COVID-19 pandemic, which is now operating under the name Akij Steel.
Dominage Steel Building Systems raised Tk 300 million from the capital market in 2020 by issuing 30 million shares at a face value of Tk 10 each. The funds were planned for construction, electrical installations, machinery purchases, and IPO-related expenses.
The company has an authorized capital of Tk 1.5 billion and a paid-up capital of Tk 1.02 billion. It is categorized as a B-category listed firm, with sponsors holding 30%, institutional investors 8%, and general investors 61% of shares. The latest trading price of the company’s shares stood at Tk 60.60.
