The Intraco Refuelling Station Limited (IRSL) has decided to merge its five subsidiary companies with itself to reduce the 'management cost' and avail 'tax benefit'.
The boards of directors of the IRSL and subsidiary companies have decided in a meeting that the parent company, IRSL, will take over all assets and liabilities of the five subsidiaries through merger.
According to a disclosure on the website of Dhaka Stock Exchange, the cut-off date of the merger will be December 31, 2018, subject to necessary approval from the securities' regulator, shareholders and the court.
The company will hold an extra-ordinary general meeting (EGM) to seek shareholders' approval.
The subsidiary companies of the IRSL are Absar & Elias Enterprises, East End Automobiles, M Hye & Co. CNG Refuelling Station, Good CNG Refueling Station and Nessa & Sons.
The IRSL holds more than 95 per cent stakes in its five subsidiary companies.
Following the merger, the IRSL can avail tax benefit i.e. 25 per cent tax rate instead of 35 per cent tax rate for all five subsidiaries companies, according to the disclosure.
Moreover, the merger will help avoid double taxation in case of dividend declared by the subsidiaries companies, the disclosure added.
The IRSL, presently an 'A' category company, was listed with the stock exchanges in 2018.
The company's sponsor-directors own 30.51 per cent stakes in the company, institutions 22.47 per cent and general shareholders 47.02 per cent as of December 31, 2018.
The share price of IRSL closed at Tk 27.70 each on Thursday, registering a rise of 2.22 per cent or Tk 0.60.
