Akij Group, one of the leading business conglomerates in the country has availed $38 million financing facility from two foreign banks for its acquisition of two Malaysian companies.
Under the agreement, Akij will get US$ 24.5 million financing from German development finance institution Deutsche Investitions- und Entwicklungsgesellschaft (DEG) and another US$ 13.5 million financing from Standard Chartered Malaysia.
Earlier, Akij also got approval from Bangladesh Bank for outward capital remittance to acquire two Malaysian companies, Robin Resources and Robina Flooring. The total worth of the acquisition deal is around US$ 78 million.
Green Delta Capital Limited was the mandated lead arranger and adviser to the transaction.
It also performed as the independent valuer of the target companies.
"This is a landmark deal as this is the first time a Bangladeshi company is acquiring any foreign companies", Rafiqul Islam, Managing Director of Green Delta Capital Limited said during the financial closing of the deal held at a city hotel on Sunday.
Based in Mentakab, both Robin Resources and its subsidiary Robina Flooring manufacture medium-density fibreboard, wood floor tiles and different wood products and export them to about 60 countries.
"Last year, the company's profit after tax was around US$ 5.0 million and annual turnover was around US$ 60 million", said Shamsuddin Ahmed, Chief Financial Officer of Akij Group.
"In the near future, we would like to expand the manufacturing capacities of these two companies by almost two-fold and would introduce new features", said Sk Jamil Uddin, Director of Akij Group.
"We will also create further employment opportunities for the local people as well as Bangladeshis in those plants", he added.
Speakers during the event also observed that the acquisition will result in exchange of technical and business know-how from Malaysia to Bangladesh and would also help expand Bangladesh's export market in Middle East.
"This acquisition by Akij Group shows that Bangladeshi companies are able to make their mark overseas. This would go a long way in better branding of Bangladesh", said Naser Ezaz Bijoy, Chief Executive Officer of Standard Chartered -- Bangladesh.
Established in 1942, Akij Group is now one of the leading business conglomerates in Bangladesh. It has a diverse presence in textiles, tobacco, food & beverage, cement, ceramics, printing and packaging, pharmaceuticals and consumer products.
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