Dhaka, Bangladesh (BBN) –Bengal Windsor Thermoplastics is set to merge with Bengal Petrochem and Synthetic Textiles, a subsidiary of Bengal Windsor, said an official disclosure on Thursday.
“The draft scheme of amalgamation of Bengal Petrochem and Synthetic Textiles with the Bengal Windsor Thermoplastics has been approved subject to sanction of the High Court and other regulatory bodies,” said the disclosure.
Each share of Bengal Windsor Thermoplastics, which was listed in 2013, traded between BDT 46 and BDT 47, before closing at BDT 46.30 on the premier bourse on Wednesday.
The company’s paid-up capital is BDT 831.60 million and authorised capital is BDT 1,000 million, while total number of securities is 83,160,000, according to statistics from the DSE.
The sponsor-directors own 32.20 percent stake in the Bengal Windsor, while institutional investors own 16.66 percent, and the general public 51.14 percent as on June 30, 2016.
Situated in Dhaka Export Processing Zone (DEPZ), Bengal Windsor was established in 2004 to produce garment hangers and accessories for exports, according to the company’s website.
The trend of merging subsidiaries started in Bangladesh in 2005 when Beximco Group amalgamated two of its units -- Beximco Pharma and Beximco Infusions -- into one.
Recently, three units of Summit Power - Summit Uttaranchal Power Company, Summit Purbanchol Power Company and Summit Narayanganj Power amalgamated with Summit Power.
In all cases, the companies announced that the merger would enhance their profits. But the profits of the entities declined or failed to maintain the momentum in most cases.
BBN/AD/SR