Heidelberg seeks to amalgamate with Emirates Cement, Emirates Power
Heidelberg Cement will find approval from its shareholders to amalgamate with Emirates Cement Bangladesh and Emirates Power Company.
Through a post on the Dhaka STOCK MARKET website yesterday, the listed cement maker informed that it's going to organise a fantastic general meeting on May 2 to seek consent in this regard.
In 2019, the German cement manufacturer made a decision to acquire Emirates Cement Bangladesh and Emirates Power Company at a price of almost Tk 183 crore.
Emirates Cement Bangladesh, that was incorporated in 2000, makes and retails cement found in both the local and international market segments.
The company's factory positioned in Munshiganj can produce 660,000 tonnes of cement yearly.
Meanwhile, with a development capability of 10 megawatts, Emirates UTILITY COMPANY supplies energy to Emirates Cement Bangladesh, which registered revenue of around Tk 69 crore within the last nine months.
The listed cement maker has been incurring losses because the second one fourth of 2019 because of fierce competition available in the market, higher prices of clinker, imposition of advance income tax and higher interest costs.
Even so, Emirates Cement which primarily markets two makes -- Scan and Ruby -- built a profit in the earliest quarter of 2020.
The listed cement supplier incurred a loss of Tk 17 crore in the first nine weeks of this year compared to a earnings of Tk 94 lakh a year earlier.
Heidelberg Cement Bangladesh, which was listed in 1989, did not provide any dividend to its shareholders this past year due to losses.
Along using its depressing performance, the business's stock prices plunged around 50 % to Tk 161 within the last two years.
