Shasha Denims is set to acquire an additional 18 per cent stake in EOS Textile Mills, an associate of Italian apparel maker, at a cost of about Tk 218 million with proportionate other actual costs.
The total cost fixed by Bangladesh Bank (BB) is more than Tk 1.21 billion for repatriation, according to a filing with the Dhaka Stock Exchange (DSE) on Sunday.
After this takeover, Shasha Denims will hold 98 per cent share of EOS Textile Mills as the Denim maker earlier purchased 80 per cent stake in EOS Textile.
EOS Textiles Mills, a 100 per cent export-oriented Textile Company, established in 1998 by Italian Investors located at Savar.
In early 2018, Shasha Denims signed a Memorandum of Understanding (MoU) with EOS Textiles Mills to buy its 40 per cent stake. Later in 2019, the company declared to acquire 80 per cent stake in EOS Textile at a value of US$ 12 million.
Shasha Denims also informed that it has received two plots measuring 400,512 sq. meters (approx) at DEPZ Extension Area from BEPZA which will be used for future expansion.
Shasha Denims, a concern of Shasha Group, one of the leading denim producers in Bangladesh, raised Tk 1.75 billion through IPO in 2014 for a major expansion and improved the quality of denim fabrics by installing modern machinery with the IPO funds. The company floated 50 million ordinary shares at an offer price of Tk 35, including a premium of Tk 25 for each Tk 10 share.
Each share of Shasha Denim, which was listed on the Dhaka bourse in 2015, closed at Tk 21.60 on Thursday on the Dhaka bourse.
The company’s consolidated earnings per share (EPS) plunged by 50.74 per cent year-on-year in October-December 2020 quarter.
The company’s consolidated EPS stood at Tk 0.33 for October-December 2020 as against Tk 0.67 for October-December 2019.
In six months, consolidated EPS was Tk 0.43 for July-December 2020 as against Tk 1.02 for July-December 2019.
The consolidated net operating cash flow per share (NOCFPS) was minus Tk 0.52 for July-December 2020 as against minus Tk 4.14 for July-December 2019.
The consolidated net asset value (NAV) per share was Tk 41.17 as of December 31, 2020, and Tk 41.41 as of June 30, 2020.
The company disbursed 5.0 per cent cash and 5.0 per cent stock dividend for the year ended on June 30, 2020.
The company’s paid-up capital is more than Tk 1.41 billion and authorised capital is Tk 2.25 billion, while the total number of securities is 141.03 million.
The sponsor-directors own 37.57 per cent stake in the company while institutional investors own 18.50 per cent, foreign investors 1.12 per cent, and the general public 42.81 per cent as of December 31, 2020.
