Now finance ministry to look into Best Holdings

The Ministry of Finance has ordered six financial entities to submit detailed information regarding Best Holdings Ltd to learn exactly what is wrong with the company that owns the five star hotel Le Meridien Dhaka.

The Financial Institutions Division (FID) of the ministry on Tuesday asked Sonali, Janata, Agrani, and Rupali Bank along with the Investment Corporation of Bangladesh (ICB) and its investment banking subsidiary ICB Capital Management to submit relevant information.

The FID wanted the complete picture of state-owned banks' investments into the company.

The banks also have to submit the minutes of their concerned board meetings where the investment plans were approved.

Details of the financial appraisal which justified Tk65 as a fair price for the company's each share also need to be submitted.

The ICB and its subsidiary also have to clarify their role in issue management for the company's planned direct listing.

A copy of the letter has been sent to the Bangladesh Bank and the Securities and Exchange Commission (BSEC) for their knowledge.

The ministry responded to media reports which revealed recent controversial attempts by a quarter of the Dhaka Stock Exchange (DSE) directors to enlist the Best Holdings directly, bypassing existing securities regulations and also the securities regulator.

The DSE IPO review panel observed too many non-compliances and questions regarding the direct listing application and draft information document about the company.

The way a portion of DSE directors recently tried to raise the direct listing agenda into DSE's board meeting also sparked criticism.

Later the BSEC ordered the exchange to stop the agenda and the finance ministry also wrote to the BSEC not to proceed based on its previous recommendation for paving the way for directly listing private sector project companies if 20% of their equity is owned by state-owned banks.