The Bangladesh Securities and Exchange Commission (BSEC) has appointed five independent directors to Ring Shine Textiles Ltd’s board amid the delayed takeover by Wise Star Textile Ltd and five Singapore-based companies. The move aims to ensure operational continuity and protect investor interests during the ownership transition.
Despite the BSEC’s conditional approval in August 2023, the transfer has faced complications. The existing board cites approximately Tk135 crore in liabilities, and the new owners haven’t addressed these concerns. Ring Shine’s board questions Wise Star’s financial capacity due to a significant paid-up capital disparity.
Ring Shine, which faced challenges since its 2019 IPO, struggled further with a factory shutdown in 2020 and production resuming after BSEC’s restructuring in 2021. The appointment of independent directors seeks to navigate the complexities surrounding the ownership transition.