AKIJ Resource to buy 30% stake in struggling Dominage Steel

AKIJ Resource Limited is set to acquire a 30% stake in Dominage Steel Building Systems Limited, marking a significant ownership shift that could reshape the struggling steel firm's future.

According to a price-sensitive information disclosure, the board of directors of Dominage Steel, in a meeting today (25 April), approved the sale of 30.78 million shares through an off-market transaction at a negotiated price. 

Infograph: TBS

The proposed acquisition involves AKIJ Resource Limited alongside individual investors Sheikh Jasim Uddin and Faria Hossain. The company is currently in the process of executing a formal sale agreement with the buyers, though the final transfer remains subject to the approval of the Bangladesh Securities and Exchange Commission. 

Once the regulatory process is complete and the shares are transferred, a new board of directors is expected to assume full control of the company's management and operations.

Market observers view this development as a turning point for Dominage Steel, which has faced mounting financial and operational distress in recent years. 

The entry of AKIJ Resource – a subsidiary of one of the country's leading conglomerates with extensive interests in the steel and construction sectors – is expected to inject much-needed financial strength and technical expertise into the company, aiming at reviving production activities and improving overall efficiency by leveraging the synergies between Dominage Steel's specialised fabrication capabilities and the incoming investors' vast industrial infrastructure.

Despite Dominage Steel's silence on disclosure regarding the acquisition, industry insiders suggest that such strategic stake sales signal deep restructuring efforts aimed at stabilising operations and restoring investor confidence. 

AKIJ Resource Limited's Deputy Chief Financial Official Raihan Kabir told The Business Standard that the company has a positive outlook on acquiring Domino's Steel. 

However, the matter is still at a very early stage, and no final decision has been made yet as the company is currently conducting a detailed review of all aspects related to the potential acquisition, he said. 

Raihan also mentioned that Akij Group already operates in the steel sector through its existing company, Akij Steel. This gives the group relevant experience in the industry, which could support any future expansion or acquisition plans.

Discussions are also taking place regarding the current shareholding structure of Domino's Steel. In particular, preliminary talks have been held about acquiring around 30% of the shares held by the company's sponsor-directors. However, these discussions are still informal and at an initial stage, he said.

Raihan added that if all conditions, due diligence, and procedural requirements are satisfactorily completed, the company's management may consider moving forward positively with the acquisition in the future.

Overall, this remains a potential business initiative at the planning and discussion stage, with AKIJ Resource following a gradual and cautious approach, he added. 

The timing of the announcement is particularly notable as it coincides with a period of intense consolidation within Bangladesh's capital-intensive manufacturing sectors. If successfully integrated, the move could reposition Dominage Steel within the competitive engineering and construction landscape, where it previously held a prominent position.

For the July-December period of the 2025-26 fiscal year, Dominage Steel saw its revenue plunge by 54% to a mere Tk5.75 crore, leading to a net loss of Tk0.94 crore. 

Furthermore, an inspection by the Dhaka Stock Exchange in late 2025 revealed that while the company's Ashulia unit in Savar remained operational, its Narsingdi factory was found closed. 

Although the company dismissed earlier media reports of a complete shutdown as "misleading," it admitted that its operations currently rely primarily on the Savar facility. 

The management argued that as an engineering and construction firm, continuous daily production at all sites is not always necessary, as much of the high-value project work occurs at various construction sites rather than within factory walls.

Interestingly, the stock market appears to have anticipated the takeover long before the formal announcement. While the company's fundamentals remained weak, its share price witnessed a remarkable rally, jumping 74% since March 2026 to close at Tk60.60 on the premier bourse last Thursday. 

This surge suggests that investors were betting heavily on the expertise and financial backing of the new owners even as the company incurred losses. Listed in 2020, Dominage Steel's most recent payout to shareholders was a negligible 0.35% cash dividend for the FY2024-25.