FCS Holdings to acquire 21.50% shares of Yeakin Polymer

FCS Holdings Ltd, a real estate and investment company, plans to acquire the sponsor shareholders' stake in Yeakin Polymer Ltd.

An application to this end was submitted to the Bangladesh Securities and Exchange Commission (BSEC) today (15 September).

According to a company disclosure, three sponsor shareholders of Yeakin Polymer, along with FCS Holdings, have jointly applied seeking BSEC approval for the transfer of 15,852,993 shares, representing 21.50% of the company's total shares, in favour of FCS Holdings.

The proposed transfer includes 7,107,562 shares from Chairman Chakladar Rezaunul Alam, 7,269,950 shares from Kapita Packaging Solutions Ltd (Director), and 1,475,481 shares from Director Didarul Alam.

Under the arrangement, no cash consideration will be paid for the shares. Instead, FCS Holdings will assume Yeakin Polymer's existing liabilities with Islami Bank Bangladesh PLC, Industrial and Infrastructure Development Finance Company, and certain supplier dues currently borne by the sponsor shareholder-directors.

Following BSEC approval, the company's board will be restructured to include representatives of the new sponsor shareholder, while Mohammad Harunor Rashid will remain as managing director.

FCS Holdings also plans to undertake a Balancing, Modernisation, Rehabilitation and Expansion programme to improve and modernise Yeakin Polymer's operations. The company has further committed to resolving all pending compliance issues from 2022 to 2025 once the share transfer is complete.

Earlier, in June last year, the current board of directors acquired a 30.52% stake in Yeakin Polymer from the previous management led by Quazi Anwarul Haque. However, the company failed to operate smoothly due to a lack of working capital and its inability to reschedule loans. As a result, investors have been suffering for a prolonged period while holding the company's shares.

On 12 May 2022, the BSEC approved the previous share transfer following a sharp surge in the company's share price – around 140% – in January 2022 amid ownership transfer speculation. However, the transfer was not completed within the original deadline despite regulatory approval.

On 21 December 2023, the BSEC granted the first extension, but the parties again failed to meet the deadline. This time, too, the share price saw a notable rise.

On 9 June 2024, the company received another one-month extension from the BSEC to complete the share transfer process.

Yeakin Polymer raised Tk20 crore in 2016 through an initial public offering (IPO) for business expansion. However, its operations declined after the government encouraged the use of jute sacks over polymer bags.

Since listing, the company has paid only a 1% cash dividend once. In February last year, it was downgraded to the "Z" category on the stock exchanges.

As of 31 July 2025, sponsors and directors jointly held 30.10% shares, institutions 10.93%, and general shareholders 58.97%.