Shepherd Industries calls creditors meeting for merger with Shepherd Textile (BD) Ltd
Taiwan-based textile company Shepherd Industries Limited has announced a creditors meeting scheduled for 18 June to seek approval for the proposed amalgamation of its sister concern, Shepherd Textile (BD) Limited.
Following a decision made by the Shepherd Industries board in August of last year, the company has taken steps towards merging with its sister concern.
An independent auditor, responsible for preparing the company's accounts for the fiscal year 2021-22, stated in the audit report, "During our visit to Shepherd Industries' factory premises, we discovered the presence of a sister concern named Shepherd Textile situated at the same location. It was observed that the two companies lacked a systematic policy for segregating their individual activities."
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The current business status of the textile mill has not been disclosed by the company.
In 2019, the Bangladesh Securities and Exchange Commission (BSEC) rejected Shepherd Industries' proposal to acquire 1.5 crore shares of the shell company Shepherd Jeans Ltd for Tk15 crore.
A reliable source at the BSEC revealed that the share purchase proposal was rejected due to the company's failure to provide essential supporting documents, including TIN, trade license, import registration certificate, export registration certificate, bonded warehouse license, VAT registration certificate, and environmental clearance certificate.
Shepherd Industries, which made its debut on the capital market in 2017, currently has the following share distribution: directors and sponsors hold 51.48%, institutions hold 23.28%, foreign investors hold 9.49%, and general investors hold 15.75%.
Since September of last year, the company's share price has remained stagnant at the floor price of Tk24.
