To diversify its business, publicly-listed ADN Telecom Limited is going to acquire a 60% stake worth Tk2 crore at SOS Developments Limited – a private limited company that provides fire safety services.
ADN Telecom will finance the investment with its own funds, the company said in its filing on the websites of the stock exchanges on Tuesday.
It also said in the disclosure that SOS Developments has signed a joint venture agreement with 'Fire Service Welfare Trust' for providing fire safety solution services with an innovative device in its systems called Instant Response System (IRS).
The agreement tenure is 10 years with expected revenue of over Tk50 crore per year.
ADN Telecom, one of the major sister concerns of ADN Group, currently provides IT and telecommunication services in the country.
It entered the stock market by raising Tk57 crore through an initial public offering (IPO) under the book-building method.
The eligible investors fixed the cut-off price of its shares at Tk30 each. General investors got the allotment at Tk27, which is 10% less than the cut-off price.
In the 2020-21 fiscal year, the company made a profit of Tk16.59 crore, and paid a 10% cash dividend to its shareholders.
In the first nine months of the fiscal 2021-22, its revenue increased to Tk82.77 crore from Tk82.36 crore in the same period of the previous fiscal, and the profit increased to Tk11.41 crore from Tk11.39 crore year-on-year.