Shepherd Industries plans to merge with its textile unit

Shepherd Industries Limited, a yarn dyeing manufacturer, has planned to merge with its weak textile unit subject to the approval of the court and relevant regulators.

“The board of directors approved the decision of amalgamation of the company with one of its sister concerns namely, Shepherd Textile (BD) Limited,” said the company in a regulatory filing on Tuesday.

Upon completion of the amalgamation, Shepherd Textile is expected to be a surviving entity, according to it.

However, it said the amalgamation is subject to the approval of the banks, other creditors and shareholders of the company and other stakeholders and sanction of the scheme of amalgamation by the High Court.

Company Secretary Maruf Bin Wali said, “Once the merger is implemented, the parent’s company will have a positive impact on its revenue.”

In the third quarter from January to March of FY22, its earnings per share jumped 300 per cent to Tk 0.40 from the same period a year back. Its revenue stood at Tk 105 crore, up from Tk 67 crore during the period.

In October last year, a team from the Bangladesh Securities and Exchange Commission visited Shepherd Industries. “During our visit to the factory premises, we found that Shepherd Textile Ltd is also situated on the same premises. Both companies did not have a systemic policy in place to separate individual concern activities.”

According to the 2021 financial report, Shepherd Industries earned over Tk 4 crore from Shepherd Textile.

On Tuesday, the share price of Shepherd Industries fell 4.43 per cent to Tk 25.9 on the Dhaka Stock Exchange. It made its stock market debut in 2017.

Shepherd Industries is one of Bangladesh’s fastest-growing yarn industries under Shepherd Group. There are 3 sister concerns: Shepherd Industries Ltd, Shepherd Textile, and Taiwan Food Processing Industries.

Established in1997, Shepherd Textile was officially registered in Bangladesh and had the first production of dyed acrylic and acrylic wool blended yarn in 1998 in Dhaka EPZ. Today the company has expanded into all kinds of yarn, washing, dyeing, knitting fabrics, and food processing.

Its manufacturing facilities are located in the Shepherd Industrial Park in Mymensingh’s Bhaluka.