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Shasha Denims has decided to acquire 80 per cent stakes in EOS Textile Mills instead of earlier decision of 40 per cent shares at a value of US$ 12 million (Tk 1,014 million).
EOS Textiles Mills, a 100 per cent export Oriented textile company established on 8th June, 1998 by Italian Investors located at Savar.
Shasha Denims has already paid Tk 300 million from IPO fund. Rest of the amount will be paid from its cash flow after getting approval from Bangladesh Bank, said a disclosure posted on the Dhaka Stock Exchange (DSE) website on Sunday.
Earlier on February 25, 2018, the company declared to acquire 40 per cent stake of EOS Textiles Mills worth approximately Tk 480 million.
Shasha Denims, a sister concern of Shasha Group, one of the leading denim producers in Bangladesh, raised Tk 1.75 billion through IPO in 2014 for a major expansion and improve the quality of denim fabrics by installing modern machinery with the IPO funds.
The company floated 50 million ordinary shares at an offer price of Tk 35, including as a premium of Tk 25 for each Tk 10 share.
Each share of Shasha Denim, which was listed on the Dhaka bourse in 2015, closed at Tk 54.80 on Thursday on the Dhaka bourse.
The company’s consolidated earnings per share (EPS) stood at Tk 0.43 for October-December 2018 as against Tk 1.18 for October-December 2017.
The company said EPS decreased compared to the same period of previous year due to significant increase in the raw material consumption cost per unit and the financial expense of the company.
In six months for July-December 2018, consolidated EPS was Tk 2.14 as against Tk 2.25 for July-December 2017.
The consolidated net operating cash flow per share (NOCFPS) was Tk 1.52 for July-December 2018 as against Tk 0.31 for July-December 2017.
The consolidated net asset value (NAV) per share was Tk 47.17 as on December 31, 2018 and Tk 46.44 as on June 30, 2018.
The company disbursed 15 per cent cash and 7.0 per cent stock dividend in 2018.
In 2017, the Shasha Denims disbursed 25 per cent cash and 6.0 per cent stock dividend.
The company’s paid-up capital is more than Tk 1.27 billion and authorised capital is Tk 2.25 billion, while the total number of securities is 127.92 million.