BMI seeks to sell a 70.68% stake in its investment arm, Tosee Melli Group Investment Company, on Tehran Stock Exchange’s First Market on March 18, according to TSE’s Saturday announcement.
The sale includes 16.25 million shares with a base price of 3,701 rials (about 8 cents). At least 30% of the sale figure must be paid in cash, with the rest offered in installments.
Bank Melli is the first national Iranian bank established in 1927 on the order of the Iranian Majlis (Parliament) and since then has consistently been one of the most influential Iranian banks, Financial Tribune reported.
BMI opened its first foreign branch in Hamburg, Germany, in 1965. The bank is owned and operated by the government of Iran.
According to its website, TMGIC has stakes in 90 firms operating in industries such as chemical, food, finance, base metals, industrial machinery manufacture, real estate, communications, textile, computer, packaging and oil.
Iran Khodro Diesel Company is also set to offer a 50.25% controlling stake in its subsidiary Charkheshgar Company on TSE’s Second Market the same day.
The offering includes 952.09 million shares with a base price of 2,787 rials (about 6 cents).
TSE’s announcement, published on behalf of Bank Melli Iran Brokerage Company for TGMIC and Hafez Brokerage Company for IKDC, mandates the buyers to offer a written pledge to devise a 'realistic' post-purchase business plan to ensure profitability and hold on to the controlling stake for at least two years after the purchase. Also, buyers cannot be part of TGMIC and IKDC or their subsidiaries.
TMGIC is financialLY health, according to THE latest company report on codal.ir. Its net income stood at 2.44 trillion rials ($54.41 million) for the nine months leading to Dec. 21, rising 4% year-on-year. Its nominal capital amounts to 16.25 trillion rials ($361.11 million).
The investment firm’s shares were being traded for 2,175 rials (about 5 cents) each at TSE on Saturday.
Charkheshgar has racked up a net operating loss of 25.95 billion rials ($576,822), growing 350% YOY. Yet this rings no alarm bells for the time as the firm’s retained earnings stand at 44.92 billion rials ($998,400), which is down 39% YOY, with a nominal capital of 952.09 billion rials ($21.15 million).
The Tabriz-based gearbox-producer’s shares were being traded for 1,707 rials (about 4 cents) at Tehran Stock Exchange.