Minori Bangladesh Limited, a subsidiary of Minori Company Limited ( a Japanese farming company) is in talks to invest Tk 50 crore in Emerald Oil where the Japanese firm has already acquired 8% stake in Emerald Oil as a shareholder. This investment is expected to help turn it around after its founder faced corruption charges and fled from the country facing trial for taking loans from BASIC Bank.
For four years Emerald Oil has been facing drops in its share prices declaring no dividends for its shareholders. Bangladesh Exchange of Securities Commission (BSEC) appointed five independent directors for Emerald Oil to improve its position in the stock market to improve its business performance and protect the general investors.
Cooperation between the banks, state and regulator is crucial towards utilizing the investment improving its credit profile.
Established in 2008 Emerald Oil began its production of its Spondon-branded rice bran oil operation in 2011. It registered with the Dhaka Stock Exchange in 2014. The stock price was Tk. 50 in 2014 rising to Tk. 80 in 2016. Following the year it saw losses both in its businesses and the stock market following the loan scam.
Since 2015, Emerald Oil failed to declare cash dividends as the previous board of directors took no initiative to turn the business around.
With a face value of Tk. 10, it’s stock price reported to be Tk. 10.8 in March, 2021. Since its reconstruction of its board, Its stock price increased to Tk. 28 till the end of June.
Minori’s Tk. 50 crore investment is fundamental to turnaround Emerald Oil from its business failures and scandals in the past.