Confidence Cement has announced plans to sell its entire stake in its Dhaka-based subsidiary, Confidence Cement Dhaka Ltd, to its sister company, Confidence Power Holdings Ltd, in a deal totaling BDT1.41bn (US$12m). This decision was approved by the board on 4 September, subject to shareholder approval at an upcoming general meeting.
The move reflects a broader strategic restructuring amid stiff industry headwinds. According to company secretary Delwar Hossain, the divestiture is aimed at unlocking liquidity to meet pressing financial obligations while maintaining legal and operational clarity between group entities. Confidence Cement’s Dhaka unit, with a 6000tpd production capacity, was expected to commence production in 1Q26.
Industry reports indicate the company twice failed to obtain regulatory approval for rights issues intended to raise capital, prompting the board to withdraw its investment from the associate company to prioritize repayment of high-cost bank loans.
The decision highlights the mounting financial pressure on cement producers in Bangladesh, as falling infrastructure demand, rising input costs, and tighter liquidity conditions continue to strain the sector.
