Bangladesh Steel Re-Rolling Mills Ltd (BSRML) is set to merge with BSRM Steel Mills Ltd under the provision of section 228 and 229 of the Companies Act 1994.
The merger and acquisition is subject to the consent of shareholders and approval from the High Court division of Supreme Court, said an official disclosure on Tuesday.
Bangladesh Steel Re-Rolling Mills (a listed entity) is currently holding around 44.97 per cent stake in the (non-listed) BSRM Steel Mills Ltd.
The board has decided to acquire 100 per cent stake of BSRM Steel Mills by Bangladesh Steel Re-Rolling Mills paving the way for merger of BSRM Steel Mills with Bangladesh Steel Re-Rolling Mills by issuing shares against rest of the stakes (around 55.03 per cent) of BSRM Steel Mills after completion of all legal and regulatory formalities.
The Bangladesh Steel Re-Rolling Mills has also appointed a valuer (listed with BSEC) to determine the purchase consideration and shares to be issued by Bangladesh Steel Re-Rolling Mills to the 55.03 per cent stakeholders of BSRM Steel Mills., said the disclosure.
Meanwhile, the boards of directors of Bangladesh Steel Re-rolling Mills and BSRM Steels Ltd have recommended 25 per cent cash dividend each for the year ended on June 30, 2019.
Re-rolling Mills: Bangladesh Steel Re-rolling Mills has recommended 25 per cent cash dividend for the year ended on June 30, 2019.
The final approval of the dividend will come during the annual general meeting (AGM) scheduled to be held on December 19 in Chattogram, said an official disclosure on Tuesday.
The record date is on October 27, 2019.
The company has also reported consolidated earnings per share (EPS) of Tk 7.88, consolidated net asset value (NAV) per share of Tk 97.46 and consolidated net operating cash flow per share (NOCFPS) of Tk 39.62 for the year ended on June 30, 2019 as against Tk 11.77, Tk. 63.70 and negative Tk 37.39 respectively for the same period of the previous year.
The company has further informed that they have generated better cash flow from operation consecutively for the last couple of years and now recovered fully.
BSRM Steels: The board of directors of BSRM Steels Ltd has recommended 25 per cent cash dividend for the year ended on June 30, 2019.
The AGM will be held on December 19 in Chattogram. The record date is on October 27, 2019.
The country's leading steel maker also reported EPS of Tk 4.60, NAV per share of Tk 55.58 and NOCFPS of negative Tk 12.43 for the year ended on June 30, 2019 as against Tk 4.79, Tk 37.48 and Tk 2.20 respectively for the same period of the previous year.