Heidelberg Cement is going to seek approval from its shareholders to amalgamate with Emirates Cement Bangladesh and Emirates Power Company.
Through a post on the Dhaka Stock Exchange website yesterday, the listed cement maker informed that it is going to organise an extraordinary general meeting on May 2 to seek consent in this regard.
In 2019, the German cement manufacturer decided to acquire Emirates Cement Bangladesh and Emirates Power Company at a cost of nearly Tk 183 crore.
Emirates Cement Bangladesh, which was incorporated in 2000, produces and retails cement in both the local and international markets.
The company's factory situated in Munshiganj has the capacity to produce 660,000 tonnes of cement per annum.
Meanwhile, with a production capacity of 10 megawatts, Emirates Power Company supplies energy to Emirates Cement Bangladesh, which registered sales of around Tk 69 crore in the last nine months.
The listed cement maker has been incurring losses since the second quarter of 2019 due to fierce competition in the market, higher prices of clinker, imposition of advance income tax and higher interest costs.
However, Emirates Cement which mainly markets two brands -- Scan and Ruby -- made a profit in the first quarter of 2020.
The listed cement manufacturer incurred a loss of Tk 17 crore in the first nine months of this year compared to a profit of Tk 94 lakh a year earlier.
Heidelberg Cement Bangladesh, which was listed in 1989, did not provide any dividend to its shareholders last year due to losses.
Along with its depressing performance, the company's stock prices plunged around 50 per cent to Tk 161 in the last two years.