Dhaka, Bangladesh (BBN)- Both Dhaka and Chittagong Stock Exchanges on Wednesday suspended share trading of Summit Power due to non-compliance with completion of the company’s amalgamation process.
According to an announcement made by the Dhaka Stock Exchange (DSE), the suspension of share trading will come into effect from August 28 (Sunday) until further instruction.
The suspension came on Wednesday night as per the instructions of the Bangladesh Securities and Exchange Commission (BSEC).
The company has failed to transfer shares in due time and submit papers on the regulator’s consent for ‘raising’ capital, according to stock exchanges.
The officials of the Chittagong Stock Exchange (CSE) said Summit Power’s share trading would resume as soon as the issuer company resolves the complexities.
Summit Power has recently started the process of amalgamation with three other companies such as Summit Purbanchol Power Company Ltd (SPPCL), Summit Uttaranchol Power Company Ltd (SUPCL) and Summit Narayanganj Power Ltd (SNPL).
Among the companies, Summit Power and SPPCL are listed with the stock exchanges.
As part of the amalgamation process, on Tuesday was the record date of SPPCL.
After the record date, CSE officials said, the shareholders of SPPCL were supposed to get shares of Summit Power on Wednesday.
But it was found on Wednesday that the shareholders of SPPCL were yet to get shares.
“After amalgamation, the capital of Summit Power also expanded. But the exchanges did not get the papers on the regulator’s consent for raising capital through amalgamation. That’s why the exchanges Wednesday suspended share trading of Summit Power,” said a senior official of the port city bourse.
BBN/SSR/BB