Shepherd Industries, a company involved in dyeing yarn and selling processed yarn to local sweater industries, is going to merge with the non-listed firm Shepherd Textile (BD) Limited.
The listed firm’s board of directors, according to a filing in the Dhaka Stock Exchange (DSE), called an annual general meeting EGM on June 25 next to approve the draft scheme of the amalgamation/merger.
The company, however, encountered difficulties in complying with relevant securities laws, rules, and regulations concerning the record date and EGM date.
The company attributes this challenge to a legal order issued by the High Court on May 22 last. The court order, filed in Company Matter No. 169 of 2023, pertains to the amalgamation of Shepherd Textile (BD) Limited with Shepherd Industries PLC.
Earlier, Shepherd Industries faced rejection from the Bangladesh Securities and Exchange Commission (BSEC) in 2019 when it had sought the regulatory nod to acquire 1.5 crore shares of Shepherd Jeans Ltd for Tk 15 crore.
Shepherd Industries currently has the following ownership structure: directors and sponsors hold 51.48 per cent of the shares, while institutions own 23.28 per cent, foreign investors 9.49 per cent, and general investors 15.75 per cent.
The company’s share price has been stuck at the floor price of Tk 24 since September 2022.