The Financial Express

BSEC accords consent to exit plan of Beximco Synthetics

| Updated: January 10, 2022 10:12:12

BSEC accords consent to exit plan of Beximco Synthetics

The Bangladesh Securities and Exchange Commission (BSEC) has accorded its consent to the proposed exit plan of Beximco Synthetics purchasing the ordinary shares of the company, a disclosure said.

According to the regulatory approval, the company will execute its exit plan in line with the existing rules formulated in 2020.

As per a previous disclosure, the company applied in November last to the securities regulator seeking its consent-in-principle for the exit plan of above 55.77 million securities.

Dr. Shaikh Shamsuddin Ahmed, a BSEC commissioner, said Beximco Synthetics will have to purchase the ordinary shares at an offer price of at least Tk 10 each.

"We will have to protect the interest of general shareholders in case of facilitating the implementation of the company's exit plan. In that case, the company will have to purchase shares at a price of at least Tk 10 each," Mr. Ahmed said.

The existing rules also say that the offer price for purchasing securities under the exit plan shall be at least face value in case of such securities traded below the par or face value subject to the approval of the commission.

On the last trading session, the share price of Beximco Synthetic closed at Tk 8.40 each.

As a result, the company will have to purchase 55.77 million shares at an offer price of Tk 10 each.

As per the existing rules, the stock exchange(s) will be responsible for ensuring all compliances relating to execution of the exit plan.

The share trading of loss making Beximco Synthetics, presently a 'Z' category company, remains suspended since September 9, 2020 following the company's move to be de-listed from the stock market.

The company recommended no dividend for the year ended on June 30, 2021 and it disbursed dividend (10 per cent stock) for the last time in 2012.

For the year ended on June 30, 2021, the company reported a loss of Tk 1.38 per share against the loss of Tk 9.20 per share for the same period of the previous year.

The sponsor-directors of the Beximco Synthetics, which was listed in 1993, hold 35.67 per cent shares, institutes 24.09 per cent, foreigners 0.02 per cent and general shareholders 40.22 per cent as on November 30, 2021.

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