BSRM Steel Mills to Merge with BSRM Ltd
The Daily Star reported that Bangladesh based BSRM Steel Mills Ltd is set to merge with its listed parent company BSRM Ltd after the board of directors of
The Daily Star reported that Bangladesh based BSRM Steel Mills Ltd is set to merge with its listed parent company BSRM Ltd after the board of directors of the group approved the merger with effect from February 1. Owners of BSRM Steel Mills will get the shares of BSRM Ltd at a ratio of 1: 0.5005. To complete the merger, BSRM Ltd will have to issue an additional 10.86 crore shares. The shares will be locked for three years. BSRM Ltd deputy managing director Mr Tapan Sengupta said “BSRM Steel Mills supplies raw materials. So, the merger will be beneficial at the end. BSRM Steel Mills doesn't sell its products in the market, so there is no need for it to operate as a separate entity As a non listed company, BSRM Steel Mills has to pay 10 percentage points higher corporate tax compared to a listed firm and bear some extra costs as a separate entity. Now, these costs will reduce.”
This is the second merger for the companies within the Chattogram based group. In 2017, BSRM Steel Ltd and BSRM Iron and Steel Company Ltd merged.
BSRM Steels Limited with a steel making capacity of 700000 tonnes started production in 2008 and has been listed with the stock exchanges in Bangladesh since 2009.On the other hand, Bangladesh Steels Re Rolling Mills Ltd with a capacityof 400,000 tonnes to manufacture mild steel products since 1960 has been listed with the stock exchanges in Bangladesh on since 2015.