RN Spinning to merge with its sister concern – The Business Standard

Listed agency RN Spinning Mills, A precedence of FAR group, Goes to be merged with Samin Meals and Beverage Industries and Textile Mills, one other non-listed agency of the group, As a Outcome of the Cumilla-based mostly spinner Might not get again to manufacturing after An monumental hearth incident in 2019.

“The merger scheme has been deliberate So…….

Listed agency RN Spinning Mills, A precedence of FAR group, Goes to be merged with Samin Meals and Beverage Industries and Textile Mills, one other non-listed agency of the group, As a Outcome of the Cumilla-based mostly spinner Might not get again to manufacturing after An monumental hearth incident in 2019.

“The merger scheme has been deliberate So as that the listed agency can start manufacturing and geneprice income for shareholders,” said A Raquibul Islam, agency secretary of RN Spinning.

“The board of directors has decided to relocate The power to the premises of Samin Mills in Gazipur,” he informed The Enterprise Regular, including that RN shareholders would get shares Inside The mannequin new entity.

Samin Meals and Beverage Industries and Textile Mills started operation Inside the 2018-2019 fiscal yr. It has no food and beverage Industry but. The textile unit of The agency presently has a performance Of producing 79,848 spindles of cotton, viscose, and CVC yarn yrly.

The lethal hearth accident sufferer RN Spinning was producing synthetic, and acrylic yarn. It raised Tk30 crore by way of an preliminary public offering (IPO) in 2010.

After two yrs of being listed, it raised An further Tk278 crore by issuing The biggest shares To reinforce manufacturing performance by way of the set up Of latest equipment.

The agency was in revenue in 2016-2017 and 2017-2018 fiscal yrs. In the 2018-19 fiscal, it incurred a Tk607.11 crore loss As a Outcome of Of hearth incident.

The agency continued to incur losses Inside The subsequent yrs. In the final fiscal (FY21), its cumulative loss stood at Tk446.68 crore.

RN Spinning shares shot As a lot as over Tk135 Inside The primary yr of its dehowever, which tumbled to Tk2.2 in late 2019. On The prime of 2021, the inventory closed at Tk6 on the Dhaka Stock Commerce.

On prime of The huge monetary dent, the spinner May even be struggling to get its insurance coverage money from Union Insurance.

Based on RN’s auditor, the manufacturing unit and its belongings have been beneath the safety of Tk132.46 crore. After the blaze, an inspection was carried out On this regard, however no evaluation report was filed.

In consequence, The agency Did not get insurance coverage advantages as but.

Based on The agency secretary Raquibul, the deliberate merger would assist RN Spinning To renew operation, convey synergy.

The merger and amalgamation scheme, however, would Rely upon the approval of the courtroom, shareholders and the securities regulator, he added, saying that it was probably that fewer Samin shares have been to be issued in the direction of extra RN shares.

“The securities regulator BSEC will finally decide the share exchange price between the listed agency and the …….

Source: https://www.tbsnews.net/economy/rn-spinning-merge-its-sister-concern-351862

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