Regulator allows BSRM subsidiary merger

The Bangladesh Securities and Exchange Commission (BSEC) has approved the merger of BSRM Steel Mills Ltd with its parent company, Bangladesh Steel Re-Rolling Mills Ltd.

The transferor, BSRM Steel Mills Ltd, is a non-listed company engaged in manufacturing premium quality MS Billet in the country, in which the parent and transferee company BSRM Ltd holds 44.97% shares.

After the merger, the paid-up capital of the listed company will rise to Tk298.58 crore, from Tk236.06 crore at present, according to a BSEC press release.

In this amalgamation, BSRM Ltd will issue more than 6.25 crore of its shares with a face value of Tk10 per share, in favour of the non-listed company's existing shareholders who own more than Tk39.44 crore of the transferor company's shares. 

The exchange ratio is 1:0.288, which means 0.288 new shares of the listed company will be issued against every share of the non-listed company, according to the BSEC. 

According to BSRM Ltd's latest annual financial statement, in 2019-2020, BSRM Steel Mills Ltd posted a profit of Tk59.8 crore, which was Tk117.53 crore in the previous year.

On Monday, the regulator approved the merger at a meeting chaired by its Chairman, Professor Shibli Rubayat-Ul-Islam.

In October 2019, the High Court had earlier approved the merger scheme. 

In the same year, the parent company held an extra-ordinary general meeting to get the proposed amalgamation scheme approved.

The board of directors of the company finally approved the merger in January 2021.