RN Spinning Mills to merge with Samin Food

Shares of RN Spinning Mills topped the gainers' list on the Dhaka Stock Exchange (DSE) yesterday after it announced that it would merge with its non-listed sister concern as it looks to return to production.

The listed spinning mills made a disclosure about its merger with Samin Food & Beverage Ind. & Textile Mills Ltd through a post on the website of the Dhaka Stock Exchange (DSE) yesterday. Its shares closed 10 per cent higher at Tk 6.60.

The company's production has been shut since 2019 when a fire incident destroyed the production plants, inventories and other supporting facilities of the factory, which is situated at the Cumilla Export Processing Zone.

"The blaze devastated the company and then we did not find the insurance compensation. So, the merger decision was taken as part of efforts to resume production," said Raquibul Islam, company secretary of RN Spinning Mills.

"Merger can improve the company's strength and capital base. We will need to take approval from other regulatory authorities."

RN Spinning Mills incurred a loss of Tk 607 crore in 2018-19 due to the fire incident. The company's cumulative loss stands at Tk 446 crore, DSE data showed.

Following the merger, the factory will be relocated to the premises of Samin Mills in Gazipur.