The state-owned Titas Gas is going to issue preference shares worth nearly Tk 2.83 billion against funds received from the government to comply with a three-year-old regulatory order.
Its board at a meeting recently decided to hold an extraordinary general meeting (EGM) on March 20 to receive the shareholders' approval.
Titas Gas, which enjoys a monopoly on pipeline gas distribution in Dhaka and Mymensingh, will issue irredeemable non-cumulative preference shares in favor of the government at face value.
Preference shares, more commonly referred to as preferred stock, are shares, against which dividends are paid out to shareholders before common stock dividends.
Non-cumulative means the preferred stock would not come with an entitlement to missed dividends.
The board prefers to issue preference shares than ordinary shares to ensure that existing shareholders are not affected, said a company official, asking not to be named.
