The shareholders of FAR Chemical Industries Ltd have approved the acquisition of SF Textile Industries Ltd. Insiders told The Business Post that this clearance came at a recent extraordinary general meeting (EGM).
The company also stated in a filing with the Dhaka Stock Exchange (DSE) on Wednesday that the merger is conditional on compliance with the terms of the Scheme and approval of the Scheme by the Honorable High Court Division of the Supreme Court of Bangladesh in accordance with Sections 228 and 229 of the Companies Act, 1994. The FAR Chemical Industries Ltd stated in November last year that it will buy SF Textile, a non-listed export-oriented yarn spinning company, along with all of its assets and liabilities.
Since 2016, SF Textile Industries has been producing cotton, viscose, and CVC yarn in Narayanganj, with a capacity of 42,250 spindles. FAR Chemical has moved its office to Narayanganj and is aiming to relocate its Cumilla facilities there as well.
However, following the announcement of the merger approval, the chemical company’s stock dropped 1.69 percent to Tk11.60 on the DSE on Wednesday. It has a Tk257 crore market capitalization and a Tk218 crore paid-up capital. The company also has a Tk80 crore surplus reserve.
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