MI Cement, one of the listed cement manufacturers, formed three subsidiaries to run its three mother shipping vessels smoothly and to safeguard its core business. The three subsidiary companies are – Ocean Voyager Shipping Lines, Ocean Victory Shipping Lines and Ocean Vision Shipping Lines.
The board of directors of the company has also okayed transfer of the three mother vessels owned by the MI Cement to its three fully owned subsidiary companies, according to an official disclosure on Wednesday.
At the moment, the performance and profit and loss from shipping operations is getting merged into the core business of cement. Having a separate company will ensure transparency and separate financials with have transparent accountability and responsibility, it said.
It will also ensure that operating and financial performance is gauged separately with separate key performance indicators for financial and other performance that can determine performance incentives.
Therefore, it is imperative that the three mother vessels may be transferred to MI Cement’s three separate fully owned subsidiaries companies — Ocean Voyager Shipping Lines, Ocean Victory Shipping Lines and Ocean Vision Shipping Lines at a valuation of Tk 568.50 million, Tk 384.60 million and Tk 706.10 million respectively.
The board has also approved maintaining of the current account with sister concerns or associate companies or subsidiary companies, of the mother company, engaged in manufacturing and selling of cement.
In addition, it has a number of sister concerns or associate companies that are engaged in the supply chain of inbound and outbound logistics and forward and backward linkage, said the disclosure.
All these companies are providing dedicated service to the mother company to sustain its operations. In this regard, the companies maintaining current accounts with sister concerns or associate companies against the goods or services received from sister concerns or associate companies, the disclosure added.
The company has recommended 10 percent cash dividend for the year ended on June 30, 2019. In 2018, the company disbursed 15 percent cash dividend.