MD MEHEDI HASAN

City Group, one of Bangladesh’s leading conglomerates, is considering the divestment of selected non-core business units to generate funds and streamline operations amid a mountainous financial burden.

The group is also exploring fresh equity injections through strategic local and foreign partners, private equity investors, and the potential public listing of some businesses to strengthen its capital base and reduce its reliance on debt.

The plans were outlined in a letter sent by City Group to the governor of Bangladesh Bank a few months ago. The Daily Star has seen a copy of the letter.

Officials at City Group and bankers who financed the conglomerate, speaking on condition of anonymity, said the group is considering sale or divestment of its tea garden, LPG business, Hoshendi Economic Zone, and a television channel.

The Daily Star repeatedly tried to contact City Group Managing Director Md Hasan by phone and WhatsApp, but received no response.

In the letter to the central bank governor, Hasan sought regulatory support, saying the group had drawn up a structured three-year recovery plan aimed at restoring liquidity, strengthening cash flow, and reducing debt.

He expressed confidence that the recovery measures, coupled with continued cooperation from lenders, would improve the group’s financial position and debt-servicing

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