High Court approves Walton Digi-Tech merger with Walton Hi-Tech

The High Court has approved the merger of non-listed Walton Digi-Tech Industries Ltd with listed Walton Hi-Tech Industries Ltd, paving the way for the group's strategic corporate restructuring.

Walton said in a price-sensitive information (PSI) disclosure that it received the formal judgment and order dated 29 July. Under the approved scheme, Walton Digi-Tech will be the transferor company and Walton Hi-Tech the transferee company.

The merger is expected to strengthen Walton Hi-Tech's business portfolio through vertical integration, adding products such as laptops, desktop PCs, printers, mobile phones, printed circuit boards (PCBs), IT accessories and electric bikes.

According to Walton, the merger will generate cost and operational efficiencies, technological and innovation synergies, expand its market reach and strengthen its competitive position.

The board of Walton Hi-Tech endorsed a memorandum of understanding on the proposed merger in September last year under the relevant provisions of the Companies Act, 1994.

Walton Digi-Tech, which has been operating for more than eight years, is a Bangladeshi technology company offering more than 123 products across multiple segments under 36 brands, according to the disclosure.

Its audited financial statements for the year ended 30 June showed paid-up capital of Tk30 crore, revenue of Tk1,015.91 crore and net profit after tax of Tk18.14 crore.

At an extraordinary general meeting held in June, Walton Hi-Tech approved a share exchange ratio of one Walton Hi-Tech share for every 38.45 shares of Walton Digi-Tech. Accordingly, 7,80,234 Walton Hi-Tech shares will be issued against the three crore shares of Walton Digi-Tech.

The Bangladesh Securities and Exchange Commission (BSEC) issued its no-objection certificate for the proposed merger in March this year.