Walton Hi-Tech to merge with Digi-Tech for business expansion, cost-cutting

To expand its business, reduce operational costs, improve efficiency, and strengthen its competitive position, publicly listed Walton Hi-Tech Industries will merge with Walton Digi-Tech Industries, a non-listed leading technology product manufacturing and marketing company.

For this purpose, a Memorandum of Understanding (MOU) was signed between the Walton Group's two companies on 3 September 2025. On the same day, Hi-Tech's 46th Board of Directors meeting approved the MOU related to the proposed merger.

The share price of the company decreased by 2.41% to Tk481.40 on the Dhaka stock exchange on Thursday.

According to the company, the merger will add numerous high-tech products to Walton Hi-Tech's portfolio, including laptops, computers, mobile phones, printed circuit boards (PCB), and electric bikes. This will significantly enhance the company's operational capacity, expand market reach, and reduce operational costs. 

In addition, it will further strengthen the country's electronics and technology manufacturing sector, positioning Bangladesh as a hub for hi-tech and digital product production.

Currently, Walton Digi-Tech Industries Limited produces and markets 123 types of high-tech products and accessories, including laptops, desktop computers, printers, mobile phones, PCBs, and electric bikes. 

"Walton Digi-Tech has earned a strong reputation in local and international markets. By merging with such a reputable company, our business will expand further."

Mohammad Ziaul Alam, CFO of Walton Hi-Tech Industries PLC 

It is the only company in Bangladesh with manufacturing facilities for mobile phones and printed circuit boards. By providing modern technology products at affordable prices, the company has gained widespread popularity across the country. 

For the 2023-24 fiscal year, Walton Digi-Tech reported a paid-up capital of Tk30 crore, net revenue of Tk1,016 crore, and a net profit after tax of Tk18.14 crore.

On the other hand, Walton Hi-Tech Industries PLC produces, markets, and exports a wide range of home and electrical appliances, including refrigerators, compressors, air conditioners, televisions, elevators, fans, cables, and washing machines. 

For the same fiscal year, the company had a paid-up capital of Tk302.93 crore, net revenue of Tk7,512.12 crore, and a net profit after tax of Tk135.65 crore.

Speaking about the merger, Mohammad Ziaul Alam, CFO of Walton Hi-Tech Industries PLC, said, "Walton Digi-Tech is a leading manufacturer, marketer, and exporter of technology products. It has earned a strong reputation in local and international markets for providing high-quality IT products. By merging with such a reputable company, our business will expand further, and investors will benefit more."

Liaqat Ali, additional managing director of Walton Digi-Tech Industries, added, "Walton Hi-Tech has been one of the top companies in the capital market, complying with all regulations from the start. This merger will further strengthen the business capacity and market presence of both companies."

Sources at Walton revealed that, upon completion of the merger, Walton Hi-Tech will establish a new lithium battery factory and scale up environmentally friendly electric bike production. This will allow the company to meet the growing demand for e-bikes and secure a strong position in this sector.

In addition to meeting most of the domestic demand, Walton Hi-Tech is expanding its business to new markets in Europe, America, Asia, the Middle East, and Africa. 

During the 2024-25 fiscal year, the company started operations in seven new countries. With cutting-edge technology, sustainable high quality, energy efficiency, environmentally friendly features, and competitive pricing, Walton products have earned strong trust in both domestic and international markets. 

Within a short period, the Walton brand has achieved a leading position in the domestic market and is establishing a strong presence globally.

Declaration of FY25

Walton Hi-Tech Industries reported a year-on-year profit decline of 23.58% in the fiscal year 2024-25, mainly due to subdued consumer demand arising from political unrest.

In its meeting, the company recommended a 175% cash dividend and a 10% stock dividend for shareholders for the end of FY25. In the previous fiscal year, the company had recommended a 350% cash dividend for shareholders.

To approve the audited financial statement, dividend, and other issues, the company has fixed its annual general meeting (AGM) on 28 October. Besides, the record date has been fixed on 28 September this year.

For FY25, the company's profit after tax was Tk1,037 crore, down from Tk1,357 crore in the previous fiscal year. Earnings per share (EPS) stood at Tk34.22, compared to Tk44.78 a year ago.

During the same period, the net asset value per share (NAV) was Tk399.74 with revaluation of assets and Tk288.29 without revaluation.

The company stated that the profit decline was primarily due to lower revenue, higher finance costs, and increased distribution expenses. For the financial year ending 30 June 2025, revenue fell by Tk429.86 crore, largely due to weak consumer demand caused by political unrest in Bangladesh between mid-July and mid-August 2024, following the student protests over civil service quota reforms.

Finance costs increased to 6.33% of sales in FY2024-25, up from 6.11% in FY2023-24. This was mainly due to higher interest rates and foreign currency losses of Tk 123.60 crore caused by ongoing currency devaluation. At the same time, selling and distribution expenses rose as the company expanded its market, further reducing operating profits.

The company also clarified that stock dividends should be paid only from retained earnings. They cannot be paid from the capital reserve, revaluation reserve, unrealised gains, profits earned before the company's incorporation, or by reducing paid-up capital. Dividends should not be declared in a way that would make retained earnings negative or create a debit balance.

As of 31 August this year, the sponsors and directors jointly hold 61.09% of the company's shares, institutional investors hold 0.70%, foreign investors hold 0.06%, and general investors hold 38.15% of the shares.