Business Desk :
Brummer Frontier PE II (Mauritius) Limited’s one-fourth stake in the listed automobile company was subject to a three-year lock-in period since its debut.
Bangladesh Securities and Exchange Commission (BSEC) has reduced the lock-in period for the Brummer and Partners’ second Bangladesh-focused private equity fund’s stake in Runner Automobiles Limited, said a press release.
Brummer Frontier PE II (Mauritius) Limited’s one-fourth stake in the listed automobile company was subject to a three-year lock-in period since its debut.
As the investments by the private equity fund are made for tenure not more than the life of the fund itself and the fund has already passed its 10 years of age, Brummer and Partners Bangladesh which runs the fund locally applied to the securities regulator for shortening the lock-in period earlier in June.
The fund made Tk105 crore equity investments in Runner Automobiles in September 2013. The stake now is valued at around Tk150 crore, according to Runner’s market capitalisation in the Dhaka Stock Exchange on Sunday.
Runner was the second-largest two-wheeler brand in the local market when Brummer injected equity to help the first two-wheeler manufacturer in the country grow.
Over the following years, Runner faced increased competition in the two-wheeler market and its market share in percentage terms dropped.
