a year ago

Appellate Division approves Kay & Que-MultiSourcing merger

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Listed Kay & Que (Bangladesh) now has no bar to execute its plan of merger with IT company MultiSourcing Limited after receiving the go-ahead from the Appellate Division.

The High Court earlier issued an order in favour of the scheme.

The Bangladesh Securities and Exchange Commission (BSEC) then appealed against the HC order.

Kay & Que said it had received a certified copy of the court order on January 19.

After the amalgamation, MultiSourcing will be an IT unit of the transferee company Kay & Que (Bangladesh).

The amalgamation will facilitate a growth in the earnings of Kay & Que, said company secretary Sayed Ahmad.

The scheme was approved in October 2018 by shareholders and creditors at the extra-ordinary general meeting (EGM) and the creditors' meeting.

Asked, a top official of the securities regulator was unable to explain why the BSEC had appealed against the HC order.

The BSEC's lawyer also could not be reached for comment.

Kay & Que (Bangladesh), which is engaged in manufacturing dry cell battery components and distribution of natural gas, was listed on the stock exchange in 1996.

The company's sponsor-directors hold 31.77 per cent shares, institutes 7.37 per cent and general investors 60.86 per cent, according to data until the end of 2022.

The share price of Kay & Que (Bangladesh) closed at Tk 247.80 each on the Dhaka Stock Exchange on Sunday after a loss of 1 per cent or Tk 2.50 from the previous day.

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