BSEC opens probe into merger of FAR Chemical, SF Textile

The Bangladesh Securities and Exchange Commission (BSEC) has formed a committee to investigate into the proposed merger of FAR Chemical Industries with SF Textile, a non-listed export-oriented yarn spinning company.

The stock market regulator, in an order dated on February 24, asked the committee to carry out a physical inspection into the factory premises and production facilities of SF Textile Industries. 

BSEC Deputy Director Mohammad Ratan Mia will lead the three-member committee while BSEC Assistant Director Mahmudur Rahman and Dhaka Stock Exchange Executive Mahar Ali have been made its members.

The committee will conduct the investigation as per the BSEC instructions and report back to the commission within seven working days after receiving of the order. 

On November 1 last year, the listed company’s board approved the draft scheme of amalgamation, subject to approval by the shareholders, High Court, and other concerned authorities.

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

Recently, FAR Chemical has relocated its office to Narayanganj and is also planning to shift its Cumilla factories there. Its share price increased 0.83 percent to Tk 12.10 on the Dhaka bourse on Thursday. Currently, the company has a market capitalization of Tk 261 crore and a paid-up capital of Tk 218 crore. It also has Tk 80 crore in surplus reserve.

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