BSEC to investigate United Airways actions

September 29, 2014

The Bangladesh Securities and Exchange Commission on Sunday formed a three-member committee to look into the recent operation suspension, board reconstruction, recommencement of operation and trade pattern of the shares of United Airways, BSEC executive director Saifur Rahman told New Age. He said that the committee had been asked to submit report within 21 working days.
BSEC director Abul Kalam has been made the convener of the committee, while BSEC deputy directors Mohammed Nazrul Islam and Mohammad Al Masum Mirdha members, said Saifur.
United Airways on September 24 suspended its operation claiming cash crunch, just two days after its founding chairman and managing director Tasbirul Ahmed Choudhury was reportedly forced to resign (on September 22) at a board meeting.
Tasbirul just after five days of his resignation came back as chairman and managing director of United Airways and the airline on the same day declared that the flights of United Airways would resume from Saturday.
Till Friday, the private airline, however, did not give any disclosure regarding its flight suspension information to the capital market regulator and stock exchanges, keeping 74.39 per cent of the company’s shareholders in the dark.
Following media reports on the flights suspension, investors on Thursday sold United Airways’ shares aggressively in the first hour of trading when the shares of the company were traded at Tk 10.70 each from its Wednesday’s closing price of Tk 11.8 each.
The shares of United Airways, however, closed at Tk 10.90 each on the day, shedding 5.93 per cent.
Despite the flight suspension news, a total 2.76 crore shares of United Airways worth Tk 29.82 crore changed hands on Thursday amid heavy buying from the mid-trading session.
A Dhaka Stock Exchange web post on Sunday said that United Airways following a DSE query informed that the Civil Aviation Authority of Bangladesh suspended the flight on request from the then acting managing director of United Airways, Md Shahinoor Alam.
‘As the company secretary was sick and did not attend office on September 24, he could not guide the then acting MD about the regulatory requirements in this regard,’ the web post said.
‘From 5:30pm of September 26, the previous management took over again and flights resumed from the morning of September 27,’ United Airways said.
‘Under the present prevailing circumstances and in the context of resignation of the managing director (acting), Shahinoor, Tasbirul has been reinstated as chairman and managing director of United
Airways,’ the web post added.
‘The management expresses its deepest regret for all that happened from September 24 to September 26,’ it said.
General shareholders hold 74.39 per cent stakes of the company’s total 56.80 crore shares, while sponsor-directors hold only 8.44 per cent and institutional investors hold 17.19 per cent shares.

-With New Age input

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