Publicly listed SS Steel Limited will invest in Al-Falah Steel and Re-rolling Mills Limited by acquiring 99 per cent of its shares at Tk87.46 crore. After that, SS Steel will further invest Tk96.68 crore in Al-Falah Steel as a share money deposit. Al-Falah Steel will issue new shares to SS Steel for this investment.
Al-Falah Steel and Re-Rolling Mills Limited, a reputed steel manufacturing company in Bangladesh, is engaged in steel production and sales. The firm can produce around 64,800 tonnes of steel per year.
SS Steel expects that this investment will add around Tk450 crore turnover to Al-Falah Steel annually and substantially increase the company’s profitability. SS Steel will finance the investment from its retained earnings and bank loans.
SS Steel Limited, a publicly-traded company, would purchase 99 per cent of Al-Falah Steel and Re-rolling Mills Limited’s shares for Tk87.46 crore.
Following that, SS Steel will make a Tk96.68 crore share money deposit in Al-Falah Steel. For this transaction, Al-Falah Steel will issue new shares to SS Steel.
Steel manufacture and sales are carried out by Al-Falah Steel and Re-Rolling Mills Limited, a reputable steel manufacturing company in Bangladesh. The company has a capacity of 64,800 tonnes of steel per year.
SS Steel anticipates that this investment will boost Al-Falah Steel’s yearly revenue by roughly Tk450 crore and significantly improve the company’s profitability. The project will be funded by SS Steel’s retained earnings and bank borrowing.
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