RN Spinning Mills, which has faced losses since 2019 and a prolonged shutdown due to a fire incident, has received regulatory approval to merge with a non-listed sister concern, Samin Food and Beverage Industries and Textile Mills. The merger will make RN Spinning Mills non-existent, absorbing revenue and profits generated by Samin Food as its own. The purpose of the merger was to resume production and generate profits for shareholders, but it does not offer any new business prospects. The merger is expected to relocate RN Spinning Mills to the premises of Samin Food and Beverage Industries in Gazipur. However, experts warn that the merger may not be beneficial in the long run, as it might not boost income. RN Spinning Mills’ existing shareholders will receive shares at a 1:5.59 ratio, meaning they will get one share of the post-merger RN Spinning for every 5.59 shares held before the merger. RN Spinning Mills had accumulated losses of Tk 4.56 billion as of March.
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