IFAD Autos Limited has recently signed an agreement with Gulf Oil Bangladesh Limited on buying 49% of its equity stakes at a cost of USD1.685 million.
IFAD Autos Limited is a leading assembler and seller of vehicles of Bangladesh since 1985.
The company made such announcement by a price sensitive information (PSI) Statement on 20th May 2017 after the end of trading hours.
Gulf Oil Bangladesh Limited is a subsidiary company of Gulf Oil International Limited (UK), also present in 73 countries of the world.
It is engaged in importing and selling its renowned brands of lubricant, grease and car care products in Bangladesh.
According to an equity research analyst, purchase of the new company will diversify the revenue stream of IFAD Autos.
According to the Dhaka Stock Exchange website, IFAD Autos currently has 15.5 crore shares outstanding, suggesting the expected profit next year from the investment in GOBL will be Tk0.28 per share.
The said investment is expected to contribute a profit of Tk. 4.36 crore in the next year towards overall profitability of the Company.
The investment amount won’t be financed from the own fund of IFAD Autos Limited.