Kay & Que plans to merge with Multisourcing

FE Online Report | Published: June 11, 2018 12:18:32 | Updated: June 12, 2018 12:58:33


The board of directors of Kay & Que Limited has adopted a draft scheme of amalgamation of Multisourcing Limited (Transferor Company) with Kay & Que (Transferee Company).

The amalgamation is subject to approval from the High Court and shareholders in the extraordinary general meeting, according to a posting on the Dhaka Stock Exchange (DSE) website on Monday.

Kay & Que and Multisourcing both are Multimode Group’s entities.

The Multimode Group was founded by two time Federation of Bangladesh Chamber of Commerce and Industries (FBCCI) President, Abdul Awal Mintoo on September 21, 1981.

The board of directors of Kay & Que has also accepted and approved the assets revaluation report submitted by M/S. Mahfel Huq & Co. Chartered Accountants.

As per the report, the value of assets is Tk 584,795,873 against the book value of Tk 138,134,723 as on 31 December 2017.

The revaluation surplus is Tk 446,661,150.

Kay & Que is a pioneer in manufacturing of carbon rods for dry cell batteries. Recently the company has diversified its business to CNG refueling stations, processing and packaging of chemicals.

Multisourcing Limited, a non-listed company, is a value added service provider. Its commercial operations started in early 2004.

Earnings per share (EPS) of Kay & Que stood at Tk 0.42 for January-March 2018 as against Tk 0.30 for January-March 2017.

In nine months for July 2017- March 2018, the EPS was Tk 0.69 as against minus Tk 0.99 for July 2016- March 2017.

Each share of the company, which was listed on the Dhaka bourse in 1996, closed at Tk 204.20 on Sunday at the DSE.

In one year, the company’s share was traded between Tk 55.30 and Tk 222.

The company failed to disburse any dividend since 2010 and placed in the “Z” category.

Sponsors hold 24.06 per cent stake in the company, while institutions 3.84 per cent and general public the remaining 72.10 per cent as on March 30, 2018, according to DSE data.

The company’s paid-up capital is Tk 49.03 million while authorised capital is Tk 100 million and total number of securities is 4.90 million.

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