FAR Chemical to acquire SF Textile

FAR Chemical Industries Ltd has secured approval from its shareholders to acquire SF Textile Industries Ltd. This approval came at a recent extraordinary general meeting (EGM), insiders told The Business Post.

In a filing with the Dhaka Stock Exchange (DSE) on Wednesday, the company further stated that the merger is “subject to compliance with the condition as provided in the Scheme and sanction of the Scheme by the Honorable High Court Division of the Supreme Court of Bangladesh in accordance with the provision of Section 228 and 229 of the Companies Act, 1994.”

In November last year, The FAR Chemical Industries Ltd announced that it is going to acquire SF Textile – a non-listed export-oriented yarn spinning company – with the latter’s all assets and liabilities.

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. FAR Chemical has relocated its office to Narayanganj and is also planning to shift its Cumilla factories to the same district.

However, the chemical company’s share price fell by 1.69 per cent to Tk 11.60 on Wednesday at the DSE following the disclosure of the merger approval. It has a market capitalisation of Tk 257 crore and a paid-up capital of Tk 218 crore.

The company also has a surplus reserve of Tk 80 crore. The company had declared one per cent cash dividend in the last financial year. Its earnings per share (EPS) stood at Tk 0.16 last FY.