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HC gives Heidelberg final approval to merge with Emirates Cement

Staff Correspondent
20 Oct 2021 00:00:00 | Update: 20 Oct 2021 02:29:15
HC gives Heidelberg final approval to merge with Emirates Cement

The Heidelberg Cement Bangladesh has received the High Court’s final clearance for its planned merger with Emirates Cement and Emirates Power Company.

The court handed down its decision in favour of the merger on Monday, the cement manufacturing company said in a news filing with the Dhaka Stock Exchange on Tuesday.

Earlier, the Heidelberg’s shareholders had approved the amalgamation scheme at the 9th extraordinary general meeting on May 2, subject to final approval of the High Court.

In November, 2019, the board of directors of HeidelbergCement had approved the acquisition of Emirates Cement Bangladesh and Emirates Power from UltraTech Cement Middle East Investments Limited.

To execute the acquisition plan, the Heidelberg Cement will pay Tk 182.58 crore to the UltraTech Cement Middle East Investments.

HeidelbergCement Bangladesh Limited is a sister concern of Germany-based multinational company Heidelberg Cement.

The company meets 13 per cent of the domestic demand for cement from two plants, located in Dhaka and Chattogram. It was listed with the Dhaka Stock Exchange in 1989.

The major business of the company is manufacturing and marketing of gray cement under the brand name of “Ruby Cement” and “Scan Cement”.

As of Tuesday, the company’s market capitalization was Tk 2,044 crore while the paid-up capital was Tk 56.50 crore and authorised capital was Tk 100 crore.

The company has surplus reserve of Tk 328 crore.

The multinational company disbursed 20 per cent cash dividend, which was the lowest in its dividend history.

The company’s losses increased four times in the third quarter of the current year, comparing to the same period of the previous year.

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