Beximco Synthetics’ EGM for exit plan approval

In order to secure shareholder approval for its exit plan from the stock exchanges, Beximco Synthetics Ltd will hold an extraordinary general meeting (EGM) on 10 March this year.

As per the plan, the company's sponsors and directors will buy its ordinary shares back from the general shareholders at a face value of Tk10 each. 

Currently, general shareholders including institutional investors hold 5.57 crore shares of the company.

In September last year, the company's board of directors decided to wind-up and delist Beximco Synthetics from the bourses.

On 8 September, the BSEC suspended trading of the company's shares in the stock market and in December, the Bangladesh Securities and Exchange Commission (BSEC) approved the company's exit plan.

In its EGM notice, Beximco Synthetics also explained the reason for its exit plan. 

The company said despite its best efforts, its business was significantly hampered by the government's reduction of duties on the importing of synthetic yarn. 

Consequently, cheap Chinese products took over the market and the production of synthetic yarn in Bangladesh became completely unviable.

The company also said in the EGM notice that it failed to declare any dividends and maintain its targeted production and profitability for the last seven years, and thus fell into huge losses. 

Consequently, it affected the company's shares and they were being traded at below face value at the bourses.

Beximco Synthetics was incorporated in 1990 with the Registrar of Joint Stock Companies and Firms as a public limited company, and got listed with the stock exchanges in 1993.

It was mainly engaged in the production and sale of Drawn Texturised Yarn (DTY), a type of polyester yarn.