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Dhaka, Bangladesh (BBN) – Shasha Denims, a leading denim maker of Bangladesh, is set to acquire major stakes of EOS Textile aiming to expand its businesses.

The denim maker has now decided to acquire 80 per cent of stakes in EOS Textile Mills for US$ 12 million, reversing its earlier decision to acquire 40 per cent of stakes.

EOS Textiles Mills, a 100 per cent export-oriented textile company, was established by Italian investors at the Dhaka Export Processing Zone in Savar on June 8, 1998.

Shasha Denims has already paid BDT 300 million from the initial public offering (IPO) fund. The remaining amount will be paid from its cash flow after receiving approval from Bangladesh Bank, the company said in a disclosure published on the Dhaka Stock Exchange (DSE) website on Sunday.

Earlier on February 24, 2018, the company announced that it would acquire 40 per cent of stakes of EOS Textiles Mills for about BDT 480 million.

Shasha Denims, a sister concern of Shasha Group, one of the leading denim producers in Bangladesh, raised BDT 1.75 billion through IPO in 2014 for a major expansion and improve the quality of denim fabrics by installing modern machinery with the IPO funds.

The company floated 50 million ordinary shares at an offer price of BDT 35, including a premium of BDT 25, for each share valued at BDT10.

On Sunday, each share of Shasha Denim, listed on the Dhaka bourse in 2015, closed at BDT 53.90, losing 1.64 per cent over the previous day despite the news.

The company’s consolidated earnings per share (EPS) stood at BDT 0.43 for October-December 2018 as against BDT 1.18 for October-December 2017.

Its consolidated EPS was BDT 2.14 for July-December 2018, down from BDT 2.25 for the same period of 2017.

The EPS declined due to a significant increase in the raw material consumption cost per unit and the financial expenses of the company, the denim maker explained.

The company’s consolidated net operating cash flow per share (NOCFPS) was BDT1.52 for July-December 2018 as against BDT 0.31 for July-December 2017.

The consolidated net asset value (NAV) per share was BDT 47.17 as on December 31, 2018 and BDT 46.44 as on June 30, 2018.

The company disbursed 15 per cent cash and 7.0 per cent stock dividends for the year ended on June 30, 2018.

In 2017, the Shasha Denims paid 25 per cent cash and 6.0 per cent stock dividend.

The company’s paid-up capital is more than BDT 1.27 billion and authorised capital is BDT 2.25 billion, while the total number of securities is 127.92 million.

Shasha Denims began its journey as a family-owned company, with a vision to create a global standard in green and sustainable denim manufacturing industry in Bangladesh.

Now it is one of the leading 100 per cent export-based denim manufacturers in the country.