SS Steel Limited is going to hold an extraordinary general meeting (EGM) on 3 September on a digital platform to secure shareholder approval for its equity investment in Al-Falah Steel and Re-rolling Mills Limited.
The record date for the EGM has been set on 4 August.
In April this year, the company decided to buy 99% shares of Al-Falah Steel for Tk87.46 crore. Al-Falah Steel will now issue new shares to SS Steel for this investment.
SS Steel expects this investment will add about a Tk450 crore turnover to Al-Falah Steel annually, and substantially increase the company's profitability.
SS Steel will finance the investment with retained earnings and bank loans.
Earlier, the company decided on investing Tk96.68 crore in Al-Falah Steel as a share money deposit for the acquisition of 99% shares of Al-Falah Steel.
Al-Falah Steel and Re-rolling Mills Limited, a reputed steel manufacturing company of Bangladesh, can produce around 64,800 tonnes of steel per year.
From July to December 2021, SS Steel's revenue increased 11% to Tk319 crore compared to the same period the year before.
During the period, its net profit stood at Tk44.94 crore, and earnings per share at Tk1.37.
As of 31 May 2022, company sponsors and directors held 31.69% shares, institutional investors 11.08%, and general investors 57.13% shares, in SS Steel.
At the end of Tuesday's trading session, the closing price of SS Steel shares was Tk17.70 each at the Dhaka Stock Exchange.