BSRM Steel Mills merges with BSRM

The stock market regulator today approved the amalgamation of Bangladesh Steel Re-Rolling Mills (BSRM) Ltd and its sister concern BSRM Steel Mills Ltd.

After the amalgamation, the paid-up capital of BSRM would be soared to Tk 298.58 crore from Tk 236 crore, according to a statement of Bangladesh Securities and Exchange Commission (BSEC).

So, the re-rolling mills will issue 6.25 crore shares to the shareholders of BSRM Steel Mills instead of 39.44 crore shares whose face value remains at Tk 10.

The commission approved the merger in a meeting and also gave go-ahead to the amalgamation ratio of 1: 0.288 following the order of the High Court.

BSRM is currently holding 44.97 per cent stake of the BSRM Steel Mills Ltd.

BSRM's sales hit Tk 4,577 crore in 2019-20 fiscal year and it logged in profits of Tk 92 crore in the same period, according to the data of the company's annual report.

The BSEC also decided to void ICB and ICB Capital Management from the trusteeship of two open-ended mutual fund named ICB AMCL Unit Fund and Bangladesh Fund respectively.

As the fund manager of the two funds was ICB Asset Management Company, so it decided to void the trusteeship of ICB and ICB Capital, the BSEC said, adding "the decision has been taken in order to bring transparency in the mutual fund sector".

The trusteeship of the two funds would be transferred to others, the BSEC said.