BEXIMCO Limited at its annual general meeting (AGM) today (Thursday) approved acquisition of 100 percent shares of Shinepukur Ceramics Ltd that has a paid-up capital of Tk 66.06 crore.
The meeting passed special resolutions to raise the authorised capital of Beximco Ltd from Tk 10 crore to Tk 100 crore in view of its strategy to make merger and acquisition.
The shareholders of Beximco Limited unanimously approved issuance of a further capital of Tk 22.02 crore for the acquisition by exchanging one Beximco Limited share for three Shinepukur Ceramics shares. However, further issuance of capital is subject to approval by the Securities and Exchange Commission (SEC).
The meeting also declared 10 percent cash and 10 percent stock dividends for its shareholders for the year 2004.
The meeting was presided over by Chairman of the company ASF Rahman. It was also attended, among others, by Vice Chairman Salman F Rahman, Directors Iqbal Ahmed, MA Qasem, OK Chowdhury, Dr Abdul Alim Khan and ABS Rahman, Legal Adviser Barrister Rafique-ul Huq, Company Secretary Md Asad Ullah.
Established in January 26, 1997, Shinepukur Ceramics Limited launched commercial production of porcelain tableware in April 1999 and Bone China tableware in November the same year.
Authorised capital of the company is Tk 500 crore, while paid-up capital is Tk 66.06 crore. The factory of the company is located at Sarabo in Kashimpur, Gazipur and it employs as many as 2,127 employees.
The exchange ratio, 1:3, was determined by renowned valuers, SF Ahmed & Co, Chartered Accountants, an associate of Ernst & Young International, INC of New York USA.
Until December 31, 2004, Shinepukur Ceramics fetched a net profit of Tk 6 crore on a turnover of Tk 103 crore.
Earlier this past Tuesday, the shareholders of Shinepukur Ceramics Ltd at its AGM approved the proposal placed by Beximco Ltd to acquire 100 percent share of Shinepukur Ceramics Ltd.
According to the annual reports of both companies, the share exchange will benefit the shareholders of these companies as the earning per share, earning based value and discounted cash flow value would be much better compared to the figures of individual companies.