Shasha Denims to buy 80% share of Italy-based company

Shasha Denims Ltd is set to purchase 80 percent share of EOS Textile Limited — an associate of Italian apparel company. Bangladesh Bank has given permission for it.

Aslam Ahmed Khan, company secretary to the Shasha Denims, said they will buy the share at Tk111 crore, a value authorised by the central bank.

According to a contract between the companies, no change will be made to the company management even though Shasha will take over the EOS.

In early 2018, Shasha Denims Ltd signed a Memorandum of Understanding with EOS Textiles Mills Ltd in order to buy its 40 percent share.

But in a meeting earlier this year, Shasha officials decided to take over 80 percent shares of the EOS, with an estimated cost of $12 million.

As much as Tk30 crore has already been paid from then unutilised initial public offering (IPO) proceed, while the rest of the amount will be spent from Shasha Denims’ liquid cash flow.

Located at the Dhaka Export Processing Zone, the hundred percent export-oriented ESO Textile Mills has been in business since 2002.

The company mainly produces woven fabric and currently employs 211 people.

As of June 30 this year, the turnover of the company stood at nine million US dollars (BDT 76 crore).

Benedict Baine, general manager of finance and admin at the EOS, said, “We have been making profits for a long time. Besides, the change in the ownership will not impact the management of the company.”

However, he refused to disclose any detailed information about the company’s financial status.

According to Dhaka Stock Exchange sources, Shasha’s turnover in the last three quarters of fiscal year 2018-19 was Tk619.29 crore. The Earning Per Share (EPS) stands at Tk3.76, up by slightly over 10 percent from the last year’s.

The Net Asset Value (NAV) per share of the company rose to Tk48.79 after March 31, 2019.