C&A Textiles, recently involved in a scam, is planning to merge with Alif Industries Limited, part of the Alif Group, pending approval from banks, creditors, and shareholders. Following the merger, both companies will operate as Alif Industries Limited, according to a stock exchange filing. The news caused Alif Industries’ shares to rise by 8%, closing at Tk90.30 each, while C&A shares increased by 2.59% to Tk11.90 each at the Dhaka Stock Exchange.
The Managing Director of both companies highlighted that an auditor would determine the base share price, considering earnings per share, net asset value, and market value of shares. Investors anticipate higher value for C&A Textile shares after conversion to Alif shares. However, market price alone doesn’t solely determine the base price for the merger, urging caution to investors. The entire merger process is expected to take about a year, requiring approvals from various parties, including banks, shareholders, and regulatory authorities.
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