Maksons Spinning to boost stake in sister concern Maksons Textile
On Thursday, the share price of the company declined by 6.33% to Tk7.40 on the Dhaka Stock Exchange
Highlights
- Maksons Spinning to acquire an additional 2 crore shares in its sister concern
- Each share is priced at Tk10, with a total investment of Tk20 crore
- The company previously held a 50% stake
- Its share price closed at Tk7.40 on Thursday
Maksons Spinning Mills Limited has decided to raise its ownership stake in its sister company, Maksons Textile Ltd.
To achieve this, the company plans to acquire an additional 2 crore shares of Maksons Textile at Tk10 per share. The total investment for this acquisition is Tk20 crore, pending approval from shareholders at its annual general meeting (AGM) scheduled for 17 February 2025.
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The decision was made during a board meeting on Wednesday, according to a disclosure issued on Thursday (28 November).
On Thursday, the share price of the company declined by 6.33% to Tk7.40 on the Dhaka Stock Exchange.
According to the disclosure, Maksons Textiles Limited is a fully export-oriented spinning factory with a production capacity of 27,000 kg of yarn per day.
In October 2021, the company decided to acquire a 50% stake in its sister concern, Maksons Textile Ltd. To facilitate this, the company contributed 194.35 decimals of land and made a fresh investment of Tk2.75 crore for the 50% stake.
The land, located in Ashulia, Savar, is currently unused property of Maksons Spinning Mills. The paid-up capital of Maksons Textile Ltd is Tk30 crore.
The projected annual turnover of the project will be approximately Tk250 crore.
In Wednesday's meeting, the board of directors of the company could not recommend any dividend for the fiscal year ending 30 June 2024.
Approval for the dividend, audited financial report, and other matters will be addressed at the AGM on 17 February 2025. A record date has been set for 29 December 2024.
According to the company's 2024 financial report, its net profit stood at Tk87.91 crore, compared to a loss of Tk93.72 crore in the previous year.
In FY24, the company generated revenue of Tk545.63 crore, up from Tk440.76 crore in the previous fiscal year.
The loss per share of the company stood at Tk3.69 and the net asset value per share was at Tk12.29.
The company stated in its statement that its financial performance has been significantly impacted due to the following factors: a decrease in the unit price of finished goods, a rise in raw material costs, higher expenses for salaries and wages, increased utility costs, and a notable rise in financial charges.
As of 31 October 2024, the sponsors and directors jointly hold a 30% stake in the company, institutes hold 5.76%, and general investors 64.24% shares of the company.
The company was listed on the stock exchanges in 2009.
