HC allows merger of Emirates Cement and Power with HeidelbergCement

HeidelbergCement Bangladesh Ltd has got a nod from the High Court for merger with Emirates Cements and Emirates Power.

Emirates Cement Bangladesh Limited has an annual production capacity of 6.60 lakh tonnes and Emirates Power Company Limited has a capacity of 10 MW.

Earlier, Heidelberg's shareholders approved the merger agenda in the extraordinary general meeting.

Now,  German-based multinational company, which manufactures cement under its popular brands - Scan Cement and Ruby Cement, has no further bar to amalgamation with the two companies.

However, HeidelbergCement will later disclose what share will be included in its paid-up capital after the merger. 

Earlier, in 2019, Heidelberg bought all shares of the two companies from UltraTech Cement Middle East Investments Ltd at a total cost of Tk182.58 crore.

At present Heidelberg operates them as subsidiary companies.

HeidelbergCement earned Tk205 crore from Emirates Cement in the first three quarters of 2021. But as a non listed firm, Emirates Cement has to pay 30% corporate tax. After amalgamation, it will pay 22.50% tax.

However, in the July-September this year, HeidelbergCement's consolidated financial report, disclosed on Monday, said it incurred a loss of Tk10.78 crore.

Due to this, its share price dropped 7.29% to close at Tk330.30 on Tuesday at the Dhaka Stock Exchange.