Premier Cement shareholders nod to Tk315cr preference shares issuance
Now, the company will seek the final approval from the Bangladesh Securities and Exchange Commission (BSEC) to proceed with the plan
Shareholders have approved Premier Cement Mills Limited to issue preference shares worth Tk315 crore for restructuring its balance sheet and the prepayment of its high-cost debts.
Now, the company will seek the final approval from the Bangladesh Securities and Exchange Commission (BSEC) to proceed with the plan.
In its first extra-ordinary general meeting (EGM) on 8 September, the shareholders have approved the company's decision, which was taken by the board of directors last week of July.
The shareholders also approved renaming the company to Premier Cement Mills PLC from Premier Cement Mills Limited following the company's act.
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According to information from the company, Premier Cement Mills will issue 1,260 fully redeemable non-convertible cumulative preference shares at a face value of Tk25 lakh each.
The sponsors and directors of the company will subscribe to Tk75 crore and the rest Tk240 crore will be subscribed by private placement and other investors.
Preference shares are company shares against which investors avail no voting right in general meetings and enjoy preference over the general shareholders to be paid dividends in a regular situation as well as the leftover during liquidation.
The fully redeemable non-convertible preference shares would be issued for five years, while the company would take up to 12 years to pay back the company sponsors and directors.
The preference shareholders would get dividends twice a year, and the company would redeem the preference share in equal semi-annual instalments, which would commence from 18 months of the issuance.
Premier Cement was listed on local stock exchanges in 2013 and now stands in the "A" category.
Due to the Covid-19 pandemic, in fiscal 2019-2020, the cement manufacturer reported a decline in both revenue and profit. After that, the business of the company bounced back riding on the surge of demand for its product.
According to its financials, in the first nine months of fiscal 2020-2120, the revenue grew by 13% to stand at Tk958.15 crore, compared to the same period of the previous year.
The profit jumped 200% to Tk43.14 crore from Tk14.29 crore in the corresponding period a year ago.
