Renata gets High Court nod for merger with Renata Oncology
The BSEC has no objection in this regard
Renata Limited got approval from the High Court on July 19 for the merger with its subsidiary company Renata Oncology Ltd.
Earlier, Bangladesh Securities and Exchange Commission (BSEC) had examined the amalgamation scheme of Renata with its subsidiary. The BSEC gave no objection in this regard.
Moreover, the shareholders and creditors of Renata Limited have already provided permission through meetings in this regard which were held on January 8 and February 8 this year, respectively.
The amalgamation process
The board of directors of Renata Ltd has already approved a draft proposal for the amalgamation of the two companies.
According to the draft proposal, the absorption will take place with the exchange of 0.02 shares of Renata Ltd for each share of Renata Oncology Ltd.
The exchange will be based on net asset value per share as of June 30, 2019, supported by audited financial statements of the two companies.
Renata Oncology
Renata Oncology is a private limited company incorporated on August 12, 2012, under the Companies Act 1994. Renata Limited holds 99.99 percent shares of the company.
The core activities of Renata Oncology are manufacturing, marketing and distribution of various oncology (cancer) treatment products.
It has an authorised capital of Tk100 crore and a paid-up capital of Tk8 crore. The number of the company's shares is 80 lakh with a face value of Tk10 per share.
As of June 30, 2019, the company earned Tk3.06 crore in revenue. Its operating loss is Tk23 lakh and total comprehensive loss is Tk74 lakh with total equity and liabilities amounting to Tk41.13 crore.
Renata Limited
Renata Limited is one of the fastest growing pharmaceutical and animal health product producing companies in Bangladesh.
The company started operations in 1972 as Pfizer (Bangladesh) Ltd. In 1993, Pfizer transferred the ownership of its Bangladesh operations to local shareholders who renamed it Renata Ltd.
The company was listed with the Dhaka Stock Exchange in 1979. The authorised capital of the company is Tk100 crore, while the paid-up capital is Tk80.54 crore. The number of its shares is 8.05 crore with a face value of Tk10 each share.
In the last audited financial year ended on June 30, 2019, the company earned Tk382.33 crore in net profit. Its basic earnings per share is Tk47.47 and net asset value per share is Tk227.04.
The closing price of Renata Ltd's each share was Tk1,114.10 on Wednesday at the Dhaka Stock Exchange.