ACI PLC has approved a Tk700 crore investment in its retail subsidiary ACI Logistics Limited through convertible preference shares, reinforcing its long-term commitment to supermarket chain Shwapno as competition in Bangladesh’s organised retail sector gathers pace.
The decision was approved at the company’s 230th board meeting on Tuesday.
Under the proposal, ACI will subscribe to 70 lakh convertible preference shares of ACI Logistics, each with a face value of Tk1,000. The transaction is expected to be completed by October 15, subject to regulatory approvals.
The capital injection will strengthen the financial position of ACI Logistics, which operates Shwapno, the country’s largest organised supermarket chain.
The company has not disclosed a specific use of proceeds, but the investment is expected to support the subsidiary’s balance sheet and long-term growth.
Convertible preference shares enable a company to raise long-term capital without immediately diluting the voting rights of ordinary shareholders. The securities may later be converted into ordinary shares under predetermined terms.
The investment comes as Bangladesh’s organised retail market attracts increasing interest from international investors. Earlier this year, Japanese conglomerate Mitsui agreed to provide ACI Logistics with a foreign currency convertible loan facility alongside technical support in supply chain management, retail operations and technology.
Industry analysts say the entry of foreign strategic partners reflects growing confidence in Bangladesh’s modern retail sector, which is expected to expand on the back of urbanisation, rising incomes and changing consumer preferences.
ACI said the preference share subscription will be completed after obtaining the necessary regulatory approvals and fulfilling other statutory requirements.
