Home ›› 02 Jun 2022 ›› Front
The Union Group of Companies Limited has expressed its keen interest in acquiring the entire Ring Shine Textiles Limited, a listed company on the stock exchanges.
The business conglomerate, which is mainly engaged in textile spinning, dyeing, and knitting, has already visited Ring Shine Textiles and submitted its proposal regarding the acquisition proposal to the Bangladesh Securities and Exchange Commission (BSEC) on May 12 this year.
In the proposal, the Union Group Managing Director Raquibul Kabir said, “We would like to introduce ourselves as a conglomerate having numerous companies under one umbrella, i.e. Union Group, having experience in the same track of business like Ring Shine Textiles. We are expanding our business in the same line and considering this fact, we are interested in taking over the listed company.”
He says they understand that the Ring Shine Textiles is facing a management crisis for numerous reasons and is in the process of liquidation to safeguard the investment of general public.
“We do have strong and efficient management and financial strength to takeover or acquisition of a company like Ring Shine Textiles,” he said in the proposal.
The Union Group agreed to take over the company because of the request by the bankers and to save the investors of the stock market as well as the assets of the country.
He said they could take over the company then their expertise would add value by BMRE and further investment as much as needed to enhance production to a reasonable level.
“We need a threadbare discussion to negotiate the liability, waiver of bank interest, release of balance IPO fund, lability with BEPZA with your good office so that the deal can happened in a win-win situation,” he said.
Production at its plant in Savar’s Dhaka Export Processing Zone has been on halt since 27 September, 2020 for want of orders from foreign buyers and a shortage of imported raw materials for the global coronavirus pandemic.
However, the company was unable to return to operation. The BSEC restructured the board in January 2021.
Ring Shine Textiles raised Tk150 crore from the market in 2019 to purchase machinery and repay bank loans.
The sponsor-directors of the debt-burdened company, all hailing from either Singapore or Taiwan, are frantically trying to sell their 31.5 per cent stake and get out of Bangladesh, sources said.
Listed on the Dhaka Stock Exchange in 2019, Ring Shine Textiles shares price stood at Tk10.40 at the Dhaka bourse on Wednesday.
Besides, Union Group is a leading multifaceted group in the country. It ranges from Textiles, Mobile phones, Aviation, Real Estate to Retail, among others.
