BSEC okays RN Spinning-Samin Food, Far Chemical-SF Textile mergers
According to the Dhaka Stock Exchange (DSE), RN Spinning has been counting losses since the fiscal 2018-19, as its operations fully closed in 2019 due to a fire incident
The securities regulator, at the beginning of this month, approved the mergers of Samin Food and Beverage Industries and Textile Mills Limited with RN Spinning Mills Limited, and SF Textile Industries Limited with FAR Chemical Industries Limited.
All four companies belong to the FAR Group, with RN Spinning and FAR Chemical being listed on the stock exchanges.
Last year, the High Court approved both the listed firms to merge with their non-listed subsidiaries. After the amalgamation, the new entities will be known as FAR Chemical and RN Spinning.
Keep updated, follow The Business Standard's Google news channel
RN Spinning-Samin Food merger
According to the Dhaka Stock Exchange (DSE), RN Spinning has been counting losses since the fiscal 2018-19, as its operations fully closed in 2019 due to a fire incident.
As per the amalgamation rules, RN Spinning's existing shareholders will get the shares at a 1:5.59 ratio. In other words, they will get one new share of post-merger RN Spinning, against their 5.59 shares held in the company before the merger.
The pre-merger RN Spinning currently has 392,544,834 ordinary shares. For the share allocation at a 1:5.59 ratio, 70,265,525 new shares will be issued at Tk10 each by the post-merger RN Spinning.
On the other hand, Samin Food's existing shareholders will get the shares at a 1:1 ratio, that is, they will get one new share of post-merger RN Spinning against each share held in Samin Food before the merger.
At present, Samin Food has 233,186,584 ordinary shares. For the 1:1 share allocation, the post-merger Samin Food will issue the same number of new shares at Tk10 each.
Hence, the total number of shares of the new entity RN Spinning will be 3,034,521,09 and its paid-up capital will be Tk303.45 crore.
FAR Chemical-SF Textile merger
According to DSE, FAR Chemical has been incurring losses since the fiscal 2020-21.
FAR Chemical's existing shareholders will get the shares at a 1:3 ratio, which means they will get one new share of post-merger FAR Chemical, against their three shares held in the company before the merger.
The pre-merger FAR Chemical currently has 218,093,423 ordinary shares. For the share allocation at 1:3 ratio, 72,697,808 new shares will be issued at Tk10 each by the post-merger FAR Chemical.
On the other hand, SF Textile's existing shareholders will get the shares at a 1:1.96 ratio. This means, they will get one new share of post-merger FAR Chemical against their 1.96 shares held in SF Textile before merger.
At present, SF Textile has 157,695,630 ordinary shares. For the 1:1.96 share allocation, the post-merger FAR Chemical will issue 80,399,525 new shares at Tk10 each.
The total number of shares of the new entity FAR Chemical will be 1,530,973,330, and its paid-up capital will be Tk153 crore.
