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Western Marine to issue rights

FE Report | November 13, 2017 00:00:00

The board of directors of Western Marine Shipyard, the country's leading shipbuilder, has decided to raise the paid-up capital by issuing rights shares, said an official disclosure on Sunday.

The board has decided to issue rights shares at 1.25R: 1 (1.25 rights shares for one existing share at Tk 20 each, including Tk 10 premium) for expansion of the shipyard capacity, BMRE (balancing, modernization, rehabilitation and expansion) and to pay off debts of the company, subject to the approval from shareholders in the extraordinary general meeting (EGM), securities regulator and other regulatory authorities, the disclosure said.

The board has also approved expansion project for production of special type vessels on its own premises. The costs of the expansion project will be approximately Tk 5.0 billion. The estimated completion time of the project will be December 2018. The company will finance the project mostly from its own sources of earnings and few loans from bank(s) and financial institutions.

The project will enable the company to build special type vessels by total 30,000 tons capacity per annum. Total capacity will be 150,000 ton from existing capacity 120,000 tons capacity.

The company expects that through building up the additional capacity by project establishment the company will be able to generate additional revenue Tk 1.50 billion per annum which will enable to increase additional profit by11 per cent additionally.

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