Brummer to sell 1cr shares of Runner Automobiles

Brummer Frontier PE II (Mauritius) is going to sell 1 crore of its shares in Runner Automobiles as a part of its initial objective for buying a stake.

"Runner Lube & Energy Ltd, the common shareholding company of Runner Automobiles, will buy the shares and you may consider it like a buy back of the sponsors of the company," said Shanat Datta, chief financial officer of Runner Automobiles.

Brummer owns a 24 per cent stake in Runner Automobiles and planned to sell the shares after the latter's listing with the stock market, he said.

As the lock in period has expired after Runner Automobiles' listing with the stock exchanges, Brummer Frontier wants to sell 8.81 per cent of its shares.

"They [Brummer] invest in all countries the same way, selling shares in companies after they are listed with the local stock market," he added.

Brummer became a significant shareholder of the company in 2013 by investing Tk 105 core routed through its Frontier Fund.

It holds 2.83 crore of the shares, which indicates that it holds 24.93 per cent of Runner Automobiles, according to the company's latest annual report.

The amount that Runner Lube & Energy Ltd will pay to buy the shares was not disclosed. Stocks of Runner Automobiles traded at Tk 54 at the Dhaka Stock Exchange yesterday.