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Evince Textiles Ltd, a listed textile maker, got its shareholders’ approval to merge with its non-listed unit Evitex Fashions Ltd.
The company disclosed the news in a filing with the Dhaka Stock Exchange on Sunday.
The shareholders approved the amalgamation of Evince Textiles and Evitex Fashions in an extraordinary general meeting, it said.
Now the company needs the approval of the High Court and relevant regulatory bodies for the merger in line with the Company Act.
“Merger is much more convenient than making a new investment. This greatly reduces the cost and benefits both companies and its investors,” Evince Textiles Chairman Anwar-ul Alam Chowdhury told The Business Post.
“At present, a group of companies around the world is leaning towards mergers rather than new investments. This new trend helps maintain competitiveness by reducing costs,” he added.
In September, the company’s board decided to merge with Evitex Fashions. Evince Textiles holds 95 per cent shares of Evitex, which started commercial operations in 2005.
Evince Textiles got listed with the Dhaka Stock Exchange in 2016. Its paid-up capital is Tk 183 crore and its market capitalization is Tk 199 crore. The company has Tk 53 crore in surplus reserves.
The company recommended 2 per cent cash dividend for the last financial year despite a sharp fall in profits.
