The Bangladesh high court recently allowed publicly listed textile-based chemical firm Far Chemical Industries Limited to merge with the non-listed SF Textile Industries Limited. The new entity will retain the name of the former. All existing equity shares of both the companies will be cancelled, according to a stock exchange filing by Far Chemical.
SF Textile is a fully export-oriented yarn-spinning company that has been in operation since 2016. Its production capacity is 42,250 spindles of cotton, viscose, and CVC yarn.
All assets and liabilities of SF Textile will be transferred to Far Chemical, whose shareholders will get a new share of post-merger Far Chemical against their three shares held in the company before. On the other hand, SF Textile’s existing shareholders will get the shares at a 1:1.96 ratio.
The total number of shares of the merged Far Chemical Industries will be 1,530,973,330, and its paid-up capital will be Tk153 cr.
The new entity’s authorised capital will be Tk501 cr, Tk300 cr of pre-merger Far Chemical plus Tk201 cr of SF Textile, as per the high court order, according to report.
In November 2021, Far Chemical announced its amalgamation with SF Textile and the shifting of its factory from Cumilla export processing zone to its premises at Rupganj, Narayanganj. Far Chemical Industries is an entity under the Far Group established in 1993.
