Kay & Que allowed to merge with ICT firm Multisourcing
The securities regulator has allowed Kay & Que Limited — a publicly listed CNG filling station which also sells stones — to merge with ICT firm Multisourcing Limited.
Under the scheme of amalgamation approved by the High Court, the Bangladesh Securities and Exchange Commission (BSEC) has allowed Kay & Que to issue 17.1 lakh ordinary shares, only for the shareholders of Multisourcing, at Tk10 each.
As a result, the listed CNG station's paid-up capital will increase to Tk6.86 crore from existing Tk5.16 crore.
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On Tuesday, Kay & Que's shares closed 8.73% higher at Tk242.90 each at the Dhaka Stock Exchange (DSE).
All shares have to be allocated to the transferor company's shareholders within a lock-in period of three years from the date of the merger.
In March 2019, the High Court approved this merger on behalf of Kay & Que. Then this April, the company sought the BSEC's approval.
The company said merging with Multisourcing will boost its profits as there will be income from the ICT wing as well. This will also have a positive impact on shareholders' interest.
At present, Kay & Que has only one CNG unit. The company started its stone business in 2018. It has leased its vacant land and office to CG Foods (Bangladesh) Ltd.
In the January to March quarter of the fiscal 2022-23, the company's net profit fell by 76% year-on-year and stood at Tk5.66 lakh, owing to a slowdown in revenue from both its CNG and stone businesses.
As of 30 June, the company's sponsors and directors jointly held 31.77%, institutions 7.13%, and the general public 61.10% shares in the company.
