Unique shares in free fall as Papia scandal hits Westin Dhaka

The price of Unique Hotel and Resorts Ltd shares has plummeted in a stock market backlash against the revelation of the alleged crimes committed by ruling party operative Shamima Noor Papia at The Westin Dhaka owned by the company.

Unique saw 13.5 percent of its share values wiped off the Dhaka Stock Exchange in nine business days since her arrest on Feb 22 and subsequent expulsion from the Jubo Mohila League for allegedly running escort services at the five-star hotel.

Shares of Hotel Sea Pearl Beach Resort and Spa Ltd, another company in the travel and tourism sector, gained 21.22 percent in this period.

“Unique’s share prices have fallen because Westin’s connection to the Papia scandal may impact the hotel’s profits in the future,” an investor told bdnews24.com.

WHO ARE AT UNIQUE

Franchised by US-based international chain Marriott and owned by Unique, the construction of the 24-storey hotel at Gulshan-2 ended in 2006.

Unique started trading on the stock market six years later and after enlistment, the company’s annual profit surpassed Tk 500 million over the past three years. It offered 20 to 22 percent cash dividends in this period.

Out of its 294.4 million shares, sponsor directors hold 52.23 percent, organisational investors 31.8 percent, foreign investors 1.33 percent and the rest, 14.64 percent, is owned by general investors.

Sponsor Director Mohd Noor Ali is managing director of the firm as well. He is also managing director of Unique Group. His wife Salina Ali is chairperson of Unique Hotel and Resorts. 

A screengrab of a video obtained from social media shows Shamima Noor Papia.

Noor Ali had been a member of the Students’ Union. He fought on Awami League ticket for the Dhaka-2 seat in the 2001 parliamentary elections but lost.

He was the plaintiff of an extortion case started against Awami League chief Sheikh Hasina with the Tejgaon police on June 13, 2007 during the military-controlled caretaker government. Police said in the final report submitted to court that they found no evidence of truth in the case.

Those, who had initiated cases against her on false charges, realised their mistake and apologised to her, Hasina said in the presence of Noor Ali in a rally in December, 2008.

Another firm of businessman Noor Ali, Borak Real Estate, has Khaled Noor, the founding CEO of the Noor Trade House, as a representative to the Unique Hotel and Resorts Board of Directors.

Chowdhury Nafeez Sarafat, the chairman of Padma Bank, sits on the board as a sponsor director.

Unique Group Director Gazi Md Shakhawat Hossain represents Unique Eastern Pvt Limited on the board.

Another member of the board is Chartered Life Insurance Company Director Mohammad Golam Sarwar, who has managed finance at different companies of Noor and who also is acting editor in the Dainik Amader Shomoy.

Former banker K Mahmood Sattar aka Mithu Sattar and Mohammed Forkan Uddin, one of the partners of MM Rahman & Co Chartered Accountants, are on the board as independent directors.