Regent Textile to obtain Legacy Fashion for Tk 83cr
Regent Textile Mills is going to acquire a 99 % stake in Legacy Fashion for Tk 83.01 crore to expand its business portfolio.
The worthiness was determined predicated on the business's net asset value mentioned in its financial record as of June 30, 2020.
"We are going to buy it to be able to build our forward linkage of textile which will be needed for establishing the composite plant," said Riajul Hoque Sikder, company secretary of Regent Textile.
"We promised our investors in the original public offering (IPO) period that people want to transform ourselves into a composite plant and this is a step towards that goal," he added.
The textile company informed its stock investors about the development yesterday through the of Dhaka and Chattogram bourse websites.
As the news headlines broke, stocks of Regent Textile, listed with the bourses in 2015, rose 1.92 % to Tk 10.60 as of yesterday.
Legacy Fashion can be an export-oriented garment company established in 2006.
The factory is positioned in the BSCIC Industrial Estate in Kalurghat, Chattogram, which has the nomination of prominent and branded international buyers. Its average yearly turnover has been over Tk 300 crore for days gone by three years.
Regent Textile's Tk 80 crore investment in the garment business was previously approved by its shareholders in an extraordinary general meeting held on August 27, 2020. The remaining amount should come from other sources.
Regent Textile's paid-up capital was Tk 127 crore and it includes a reserve and surplus of Tk 165 crore.
The textile company raised Tk 125 crore in funds from the currency markets to modernize, expand, and buy a garment factory.
It started commercial businesses of its new unit after raising the fund through its IPO proceeds, enabling it to improve its fabric production capacity by 233 %, or one lakh metres each day.
The business disbursed 5 per cent stock dividend among its investors for the fiscal year that ended on June 30, 2019.
That year, its profit dropped 12 % to Tk 11.79 crore when compared to same before a year before.
