Published :
Updated :
For all latest news, follow The Financial Express Google News channel.
Evince Textiles has decided to issue 0.79 million ordinary shares to the shareholders of non-listed Evitex Fashions as part of a merger plan.
The listed company will issue shares at a ratio of 1:1.80 at a face value of Tk 10 each, subject to approval of the Bangladesh Securities and Exchange Commission.
The decision was taken at a board meeting on Wednesday after the High Court had given a verdict in favour of an amalgamation scheme between Evince Textiles and its subsidiary Evitex Fashions.
The merger will help reduce the management cost and corporate tax, and ease accounting hassles, said company secretary Md Sabbir Hasan Mahmud.
Having started commercial operation in 2003, Evince Textiles produces woven fabrics for international brands and retailers.
It returned to profit in January-March this year as its other income added Tk 4.10 million. Evince Textiles incurred a loss of Tk 62 million in the same period last year.
The company made a consolidated loss of Tk 23.12 million in the nine months through March this year against a profit of Tk 67 million in the same period of the previous year.
Evince Textiles' stock has been languishing at the floor price of Tk 9.40 in the last one and a half months.
babulfexpress@gmail.com