Yeakin Polymer Limited, a publicly listed polysack manufacturer in Bangladesh, has faced delays in completing the sale of sponsor-director shares to Kapita Packaging Solutions Limited, even though regulatory approval was granted 16 months ago. The Bangladesh Securities and Exchange Commission (BSEC) had approved the transfer of ownership in May 2022, but the approval has now become time-barred and non-executable. Yeakin Polymer must request a time extension from the BSEC to proceed with the ownership transfer.
Under the share purchase agreement, Yeakin was supposed to sell 30.114% of its sponsor-director shares to Kapita Packaging. However, the shares cannot be sold until the outgoing sponsor-directors obtain no-objection certificates (NOCs) from various lenders to whom Yeakin owes nearly Tk34 crore.
The delay has raised questions from the regulator, who wants to know the reason behind it and the current production status of Yeakin Polymer’s factory. Yeakin’s share price has experienced fluctuations in response to news related to the ownership transfer and production resumption. On July 20, 2023, Yeakin’s DSE share price closed at Tk31.40, a 93% jump from Tk16.3 on April 30, 2023. On September 14, 2023, the company’s shares closed at Tk 24.20 at the DSE.
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