Regulator allows BSRM subsidiary merger
Following the merger, paid-up capital of the listed company will rise to Tk298.58 crore, from Tk236.06 crore at present
The Bangladesh Securities and Exchange Commission (BSEC) has approved the merger of BSRM Steel Mills Ltd with its parent company, Bangladesh Steel Re-Rolling Mills Ltd.
The transferor, BSRM Steel Mills Ltd, is a non-listed company engaged in manufacturing premium quality MS Billet in the country, in which the parent and transferee company BSRM Ltd holds 44.97% shares.
After the merger, the paid-up capital of the listed company will rise to Tk298.58 crore, from Tk236.06 crore at present, according to a BSEC press release.
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In this amalgamation, BSRM Ltd will issue more than 6.25 crore of its shares with a face value of Tk10 per share, in favour of the non-listed company's existing shareholders who own more than Tk39.44 crore of the transferor company's shares.
The exchange ratio is 1:0.288, which means 0.288 new shares of the listed company will be issued against every share of the non-listed company, according to the BSEC.
According to BSRM Ltd's latest annual financial statement, in 2019-2020, BSRM Steel Mills Ltd posted a profit of Tk59.8 crore, which was Tk117.53 crore in the previous year.
On Monday, the regulator approved the merger at a meeting chaired by its Chairman, Professor Shibli Rubayat-Ul-Islam.
In October 2019, the High Court had earlier approved the merger scheme.
In the same year, the parent company held an extra-ordinary general meeting to get the proposed amalgamation scheme approved.
The board of directors of the company finally approved the merger in January 2021.
