Two companies associated with United Commercial Bank (UCB) Chairman Sharif Zahir plan to acquire a combined 11.2 crore shares in the lender, following Bangladesh Bank’s decision to ease ownership restrictions.
Z & Z Intimates Limited intends to buy 3 crore shares, while Ananta Denim Technology Ltd plans to purchase 8.2 crore shares through the public or block markets of the Dhaka and Chittagong stock exchanges, according to separate disclosures on Wednesday.
The proposed purchases represent 4.82 per cent of UCB’s 232.56 crore outstanding shares and would be worth about Tk103.04 crore at Wednesday’s closing price of Tk9.20.
UCB shares surged 9.52 per cent on the Dhaka Stock Exchange (DSE) on Wednesday.
The announcements came a day after Bangladesh Bank exempted UCB from Section 14(Ka) of the Bank Company Act, 1991, raising the maximum permitted holding for a single investor or family from 10 per cent to 30 per cent.
The exemption, granted under Section 121 in consultation with the government, is intended to help strengthen the bank’s capital base.
However, purchases of existing shares in the secondary market would change ownership without directly injecting fresh capital into UCB.
As of 30 September, sponsors and directors held 10.27 per cent of the bank, institutional investors 36.29 per cent, public shareholders 52.17 per cent, the government 0.81 per cent and foreign investors 0.46 per cent.
The regulatory relaxation follows UCB’s efforts to attract strategic investors after Bangladesh Bank dissolved its 18-member board in August 2024 following the fall of the Awami League government.
The former board was dominated by relatives of former land minister Saifuzzaman Chowdhury, including his wife and then chairman Rukhmila Zaman, sister Roxana Zaman Chaudhury and relatives Anisuzzaman Chowdhury and Asifuzzaman Chowdhury.
A Bangladesh Bank official said a substantial portion of Saifuzzaman’s shares remained blocked under a High Court order, complicating efforts to bring in large investors.
UCB secured regulatory approval for a Tk775 crore rights share issue and issued those. It also got regulatory nod for a Tk800 crore subordinated bond issue.
Shareholders have approved plans to attract domestic and foreign strategic investors, which the bank expects could bring capital, technology, international experience and stronger governance.
