Home ›› 17 Feb 2022 ›› Stock
C & A Textiles, recently acquired by Alif Group, says it will issue new shares to the incoming management to inject funds into the company.
The board decided to raise Tk 50 crore in capital through the issuance of new shares to the incoming management as per the securities rules, said the company in a filing with the Dhaka Stock Exchange on Wednesday.
The price of new shares will be calculated taking the last one-year weighted average share price until September 2, 2021, into the account, it said.
For the issuance of new shares, the company will hold an EGM on March 3.
As per the condition of the securities regulator, the board also decided to deposit the required down payment to the bank to apply for rescheduling the total outstanding loan of C&A Textiles, according to the filing.
On October 8 last year, the Bangladesh Securities and Exchange Commission allowed Alif Group to acquire C&A Textiles tagging seven conditions, including immediate resuming production of the ailing company, and taking over the liabilities.
Azimul Islam, who is also the managing director of Alif Group, took over the charge of the managing director of the company.
Following the news, its share price increased 3.37 per cent to Tk 9.20 on the DSE.
The company also announced the board approved Tk 5 crore for ongoing repair and maintenance to make the factory ready for trial production.
The board also approved the existing shareholding directors of C&A Textiles to enter into a share sale or transfer agreement with the incoming management of C&A Textiles Ltd.
At a news conference in November last year, the managing director of Alif Group had said that C&A Textiles would go into production from January 2022.
However, the company has made no headway since the announcement.
C&A Textile was dissolved its previous board and a new board was formed on September 9, 2021.
Alif Group has two companies listed on the stock exchange. One is Alif Industries and the other is Alif Manufacturing.
The production of the scam-hit company remained suspended for five years before Alif Group came in taking over the management of the company.
To bring the company from the brink, the BSEC restructured the company’s board in March last year.
C&A Textiles paid dividends only once in 2016 after listing in 2015. The previous management was allegedly involved in irregularities for which the BSEC punished.
Previously, Alif Group bought CMC Kamal Textile and Sajeeb Industries.
