For the first time in the history of Bangladesh’s LPG industry, a foreign company (SHV Energy) has acquired all stakes at a local venture for an estimated $ 100 million in a deal closed in late August. The acquisition was financed and supported by HSBC Bangladesh.
Starting LPG bottling business in 2018, Petromax LPG Ltd, with its 6500 MT LPG storage facility, ascended to the fifth spot with around 6% share in the local LPG market in terms of volume.
The other company, Petromax Cylinders, has a single-shift capacity to manufacture 5 lakh LPG cylinders a year at its Mirzapur Tangail plant, according to Hasan Imam Siddiki, head of group finance at Petromax’s parent Youth Group.
SHV Energy, present in 24-25 countries across four continents, aims to “make clean and safe energy options accessible and affordable to as many customers and companies as possible,” reads the HSBC statement.
It also said SHV believes in the untapped high-growth potential of the Bangladesh LPG market as the country is slowly transitioning to cleaner fuel like LPG from the current scenario of widely-used polluting fuels.
HSBC Bangladesh Chief Executive Md Mahbub ur Rahman said, “This agreement is a significant indicator of the growing inbound foreign investments in Bangladesh. It is also a reflection of the strong economic foothold that Bangladesh is gaining in the global energy arena.”
Source: The Business Standard