The Bangladesh Securities and Exchange Commission (BSEC) has conditionally approved the takeover of Ring Shine Textiles by Wise Star Textile Mills and five Singapore-based private companies. Wise Star will acquire 2% of Ring Shine’s outstanding shares, while the other five companies will take over a 36% stake. The shares will be transferred at a negotiated price outside the stock exchanges but in compliance with securities laws, and they will be placed in the public category as the owners will be shareholder-directors.
The new shareholder-directors will be responsible for taking on Ring Shine’s existing liabilities, including bank loans totaling Tk 5.5 billion and Tk 800 million owed to the Bangladesh Export Processing Zones Authority (BEPZA). The company had assets worth over Tk 10 billion.
The BSEC had previously halted the IPO fund release due to irregularities by Ring Shine’s sponsor-directors. The new board may use the remaining IPO funds to ensure the company’s smooth operation and payment of dues. Ring Shine Textiles, which manufactures dyed yarn and fabrics, faced financial difficulties due to the pandemic and other factors, leading to a change in ownership.