CMC Kamal, Alif Unitex merger underway

CMC Kamal Textile Mills Limited, a listed company on the stock market and non-listed Alif Unitex Limited, have decided to go for merger, said a web post on Dhaka Stock Exchange (DSE) on Monday.
The board of directors of the two companies under the same set of management has approved a draft scheme of such a tie-up, which will be amalgamated under the provisions of sections 228 & 229 of the Companies Act, 1994.
The amalgamation is subject to approval of shareholders, and subsequent sanction of the High Court, said the web post.
"The amalgamation will be effective immediately after obtaining the Court's order and the whole of the undertaking and the entire land and properties," said the web post.
All the properties that include the title of land, building, other movable and immovable assets, tights, patents, interests, goodwill, licences, liabilities, obligations, claims etc. of every description of Alif Unitex will be transferred to and vested in the CMC Kamal Textile Mills as per procedures of the scheme of Amalgamation be sanctioned.
A total of 76,050,000 ordinary shares of Tk 10 each of CMC-Kamal Textile Mills will be issued to the shareholders of Alif Unitex at an exchange ratio of 8.45 shares of the transferee company for one share of the transferor company subject to securities regulator's sanction.
On the DSE Monday, each CMC Kamal share traded between Tk 15.50 and Tk 16 and closed at 15.50.
CMC Kamal was listed on the Dhaka bourse in 1997. Of the total shares - sponsor-directors own 31.97 per cent, intuitions 8.07 per cent and public 59.96 per cent.  
Earlier in 2006, Beximco Group had merged its four textile units into one, and in 2008 two other units of the group merged with Beximco. Tripti Industries also amalgamated with Olympic Industries. In 2014, Keya Cosmetics merged with its three other associate companies-Keya Cotton Mills, Keya Spinning Mills and Keya Knit Composite.
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