Yeakin Polymer reapplies to transfer 21.5% sponsor stake to FCS Holdings

Yeakin Polymer has reapplied to the Bangladesh Securities and Exchange Commission (BSEC), through its Managing Director Mohammad Harunor Rashid, seeking approval to transfer 21.50% shares held by three sponsor-directors to FCS Holdings Ltd after securing the required no-objection certificates (NOCs) from the company's lenders.

The fresh application was submitted to the regulator on Tuesday, nearly a year after a similar proposal failed to move forward because the required NOCs relating to the company's defaulted loans had not been obtained.

The share price of the company closed at Tk25.10 on the Dhaka stock exchange yesterday (1 August).

The proposed transaction involves the transfer of 1,58,52,993 shares, equivalent to 21.50% of Yeakin Polymer's total outstanding shares, from three sponsor-directors to FCS Holdings, a real estate and investment company.

The shares to be transferred include 71,07,562 shares held by Chairman Chakladar Rezaunul Alam, 72,69,950 shares owned by Director Kapita Packaging Solutions Ltd, and 14,75,481 shares held by Director Didarul Alam.

Managing Director Mohammad Harunor Rashid, who holds the remaining 8.60% of the sponsor-directors' combined 30.10% stake, is not part of the proposed transfer. He will continue as managing director even after the ownership change, if the transaction receives regulatory approval.

Under the proposed arrangement, FCS Holdings will not pay cash for the shares. Instead, it will assume Yeakin Polymer's outstanding liabilities with Islami Bank Bangladesh PLC, Industrial and Infrastructure Development Finance Company (IIDFC), as well as certain supplier dues currently borne by the sponsor-directors.

Yeakin Polymer currently has outstanding loans of around Tk52 crore with banks and financial institutions. Of the total, around Tk43 crore is owed to Islami Bank and Tk9 crore to IIDFC. The company has already secured NOCs from both lenders, fulfilling the key regulatory requirement that prevented the previous application from proceeding, said Managing Director Mohammad Harunor Rashid to The Business Standard.

If approved by the BSEC, FCS Holdings will become a sponsor shareholder and nominate representatives to Yeakin Polymer's board of directors.

As part of the proposed ownership transition, FCS Holdings plans to undertake a Balancing, Modernisation, Rehabilitation and Expansion (BMRE) programme to modernise the company's operations. It has also committed to resolving all pending compliance issues covering the 2022-2026 period after the share transfer is completed.

FCS Holdings had earlier sought to acquire the same sponsor stake in September last year. However, the BSEC did not proceed with the proposal because the required NOCs from lenders relating to the company's defaulted loans were not submitted.

The latest application comes after that regulatory hurdle has been removed.

Yeakin Polymer has remained under financial stress despite a change in ownership last year.

In June 2024, the current board acquired a 30.52% stake in the company from the previous management led by Quazi Anwarul Haque. However, due to a shortage of working capital and its inability to reschedule bank loans, the company failed to restore normal operations, leaving shareholders waiting for a turnaround.

The ownership transfer process has also witnessed repeated delays over the past few years.

On 12 May 2022, the BSEC approved an earlier transfer of sponsor shares after the company's stock price surged around 140% in January 2022 amid speculation over a possible ownership change. However, the transfer was not completed within the stipulated timeframe.

The commission granted the first extension on 21 December 2023, but the parties again failed to complete the transaction. The company again witnessed a notable rise in its share price during that period.

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

Yeakin Polymer raised Tk20 crore through an initial public offering (IPO) in 2016 to expand its business. However, its business later declined after the government promoted the use of environmentally friendly jute sacks instead of polymer bags.

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

According to the latest shareholding data as of 30 June 2026, sponsor-directors jointly hold 30.10% of the company's shares, of which 21.50% is proposed to be transferred to FCS Holdings, while Managing Director Mohammad Harunor Rashid will retain his 8.60% stake. Institutional investors hold 17% of the shares and general shareholders own the remaining 52.90%.

Yeakin Polymer has reapplied to the Bangladesh Securities and Exchange Commission (BSEC), through its Managing Director Mohammad Harunor Rashid, seeking approval to transfer 21.50% shares held by three sponsor-directors to FCS Holdings Ltd after securing the required no-objection certificates (NOCs) from the company's lenders.

The fresh application was submitted to the regulator on Tuesday, nearly a year after a similar proposal failed to move forward because the required NOCs relating to the company's defaulted loans had not been obtained.

The share price of the company closed at Tk25.10 on the Dhaka stock exchange yesterday.

The proposed transaction involves the transfer of 1,58,52,993 shares, equivalent to 21.50% of Yeakin Polymer's total outstanding shares, from three sponsor-directors to FCS Holdings, a real estate and investment company.

The shares to be transferred include 71,07,562 shares held by Chairman Chakladar Rezaunul Alam, 72,69,950 shares owned by Director Kapita Packaging Solutions Ltd, and 14,75,481 shares held by Director Didarul Alam.

Managing Director Mohammad Harunor Rashid, who holds the remaining 8.60% of the sponsor-directors' combined 30.10% stake, is not part of the proposed transfer. He will continue as managing director even after the ownership change, if the transaction receives regulatory approval.

Under the proposed arrangement, FCS Holdings will not pay cash for the shares. Instead, it will assume Yeakin Polymer's outstanding liabilities with Islami Bank Bangladesh PLC, Industrial and Infrastructure Development Finance Company (IIDFC), as well as certain supplier dues currently borne by the sponsor-directors.

Yeakin Polymer currently has outstanding loans of around Tk52 crore with banks and financial institutions. Of the total, around Tk43 crore is owed to Islami Bank and Tk9 crore to IIDFC. The company has already secured NOCs from both lenders, fulfilling the key regulatory requirement that prevented the previous application from proceeding, said Managing Director Mohammad Harunor Rashid to The Business Standard.

If approved by the BSEC, FCS Holdings will become a sponsor shareholder and nominate representatives to Yeakin Polymer's board of directors.

As part of the proposed ownership transition, FCS Holdings plans to undertake a Balancing, Modernisation, Rehabilitation and Expansion (BMRE) programme to modernise the company's operations. It has also committed to resolving all pending compliance issues covering the 2022-2026 period after the share transfer is completed.

FCS Holdings had earlier sought to acquire the same sponsor stake in September last year. However, the BSEC did not proceed with the proposal because the required NOCs from lenders relating to the company's defaulted loans were not submitted.

The latest application comes after that regulatory hurdle has been removed.

Yeakin Polymer has remained under financial stress despite a change in ownership last year.

In June 2024, the current board acquired a 30.52% stake in the company from the previous management led by Quazi Anwarul Haque. However, due to a shortage of working capital and its inability to reschedule bank loans, the company failed to restore normal operations, leaving shareholders waiting for a turnaround.

The ownership transfer process has also witnessed repeated delays over the past few years.

On 12 May 2022, the BSEC approved an earlier transfer of sponsor shares after the company's stock price surged around 140% in January 2022 amid speculation over a possible ownership change. However, the transfer was not completed within the stipulated timeframe.

The commission granted the first extension on 21 December 2023, but the parties again failed to complete the transaction. The company again witnessed a notable rise in its share price during that period.

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

Yeakin Polymer raised Tk20 crore through an initial public offering (IPO) in 2016 to expand its business. However, its business later declined after the government promoted the use of environmentally friendly jute sacks instead of polymer bags.

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

According to the latest shareholding data as of 30 June 2026, sponsor-directors jointly hold 30.10% of the company's shares, of which 21.50% is proposed to be transferred to FCS Holdings, while Managing Director Mohammad Harunor Rashid will retain his 8.60% stake. Institutional investors hold 17% of the shares and general shareholders own the remaining 52.90%.