Shepherd Textile to merge with Shepherd Industries

Shepherd Textile (BD) Limited is going to merge with Shepherd Industries PLC with a view to cutting administrative expenses.   

In a filing on the Dhaka Stock Exchange, Shepherd Industries said its board has decided to hold an extraordinary general meeting to approve the draft scheme of amalgamation/merger.

The meeting will take place on June 25. The record date has been set at June 14.

Shepherd Industries said it was not possible for it to comply with the relevant securities laws regarding the record date and the EGM date since it would have to comply with the order passed by the High Court on May 22.

The court has ordered the two companies to complete the procedure by June 25, said Mohammed Ataur Rahman, chief financial officer of Shepherd Industries.

He said since both factories are located on the same compound in Bhaluka of Mymensingh and the corporate headquarter is also housed in the same building in the capital's Uttara, Shepherd Textile and Shepherd Industries decided to go for the merger.

"This will cut administrative expenses to a large extent. This will be ultimately beneficial for shareholders as a lot of money will be saved," he said, adding that Shepherd Textile is a profitable company.

Shares of Shepherd Industries closed unchanged at Tk 24 on the DSE yesterday.