FAR Chemical to acquire SF Textile

FAR Chemical Industries is going to acquire SF Textile, a non-listed export-oriented yarn spinning company, with the latter’s all assets and liabilities.

Its board of directors has already cleared the acquisition plan subject to approval of the concerned regulators, said the publicly traded textile chemical company in a filing with the Dhaka Stock Exchange (DSE) on Monday.

SF Textile Industries has been in operation in Narayanganj since 2016 with a production capacity of 42,250 spindles cotton, viscose and CVC yarn spinning.

Recently, FAR Chemical has relocated its office to Narayanganj and is also planning to shift its Cumilla factories.

FAR Chemical will hold an annual general meeting (AGM) on December 22, for the shareholders’ approval regarding the factory shifting plan.

However, its share price rose 6.72 per cent to Tk 12.70 on Monday at the Dhaka Stock Exchange following the disclosure of the merger plan.

Currently, the company has a market capitalization Tk 259 crore and a paid-up capital of Tk 218 crore. It also has a surplus reserves of Tk 86 crore.

For the last financial year, the company had declared one per cent cash dividend. It earnings per share stood at Tk 0.16 in the year.