Mostafa Steel Galvanizing, a corporate sponsor of Bank Asia, plans to sell 98.3% of its holding, amounting to 5.9 lakh shares, in the bank. The announcement was made in a stock exchange filing, with the sale set to take place by the end of the month through the Chittagong Stock Exchange (CSE).
The reason for such a significant divestment was not disclosed on the CSE website, and Bank Asia officials are also unaware of the motive. As of August 31, 2023, sponsor-directors held 53.35%, institutional investors 35.80%, foreign shareholders 0.21%, and general shareholders 10.64% of Bank Asia shares. Mostafa Group, based in Chattogram, faced challenges in the consumer goods and steel products businesses, resulting in losses and loan defaults, leading to the closure of its consumer goods business. The group currently owes nearly Tk2,000 crore to over 30 banks and financial institutions.
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