Linde Bangladesh has divested its welding electrode business to ESAB Group, an American-Swedish industrial conglomerate. This transaction was formally acknowledged by the company yesterday, marking a significant shift in its operational portfolio.

In an official statement, Linde Bangladesh announced that its board had ratified the transfer of 13.82 crore shares to ESAB Group Middle East FZE. Additionally, one equity share previously held by Abu Mohammad Nisar, a nominee shareholder, was transferred to Exelvia International Holdings BV.

“From henceforth, Linde Industries Pvt Ltd is no longer a subsidiary of Linde Bangladesh Ltd,” the company declared in a newspaper advertisement. The financial details of the deal were not disclosed.

Following the announcement, Linde Bangladesh’s stock declined 2.95 percent to Tk 1,208.9 on the Dhaka Stock Exchange.

Linde’s decision to sell its welding electrode business was initially announced at the end of May. The welding electrode segment has historically been a major revenue driver for Linde, contributing 53.3 percent to its income from the segment in the fiscal year 2021-22.

The sale follows a notable decrease in Linde’s financial performance. The company’s profit plunged by 40 percent year-on-year to Tk 52.56 crore for the year ending December 31, 2023, down from Tk 88.33 crore the previous year. This decline in profitability was reflected in the earnings per share, which fell to Tk 34.54 from Tk 58.04 over the same period.

Linde Bangladesh has been a significant player in the country’s industrial gas sector for over 50 years, operating through 18 sales centers. The company’s product range includes liquid and gaseous oxygen and nitrogen, argon, acetylene, carbon dioxide, dry ice, refrigerant gases, lamp gas, and medical oxygen.

Despite the recent sale and financial downturn, Linde Bangladesh’s board declared a substantial interim dividend on June 20, amounting to 1,540 percent, or Tk 154 per share. This decision underscores the company’s commitment to providing returns to its shareholders amidst the ongoing transitions.

The divestiture to ESAB Group represents a strategic realignment for Linde Bangladesh, potentially allowing the company to focus more on its core industrial gas operations while streamlining its business structure.