Far Chemical to merge with SF Textile
Far Chemical will take over all assets and liabilities of SF Textile Industries, according to the company statement
Far Chemical Industries Limited has decided to merge with SF Textile Industries Limited, a non-listed public limited firm, subject to the approval of shareholders and relevant authorities.
The board of directors of the company also decided to shift its factory from Comilla EPZ to its premises at Rupganj, Narayanganj.
According to the company statement, Far Chemical will take over all assets and liabilities of SF Textile Industries.
SF Textile Industries Limited is a 100% export-oriented yarn spinning company that has been in operation since 2016.
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The production capacity of the company is 42,250 spindles Cotton, Viscose, and CVC yarn spinning.
SudipBanik, a manager of Far Group, said Far Chemical Industries has decided to shift its factory to its land at Rupganj, Narayanganj from the Export Processing Zone (EPZ) of Cumilla.
The company management hoped that it may be possible to complete processing within six months after which it will be shifted to the new location, he added.
The company did not yet take any decision about the utilization of the EPZ land.
He said the management only decided on the merger but the clauses are yet to be determined in detail.
So it is not possible to comment in detail, he added.
Far Chemical Industries is a concern of Far Group. The Group was established in 1993 based on 100% export-oriented Sweater Industry.
The group has two other firms- ML Dyeing and RN Spinning Mills that were listed in the capital market.
Earlier, Far Chemical Industries recommended a 1% cash dividend for the year ending on 30 June 2021.
During the year, the company also posted a loss of Tk3.49 crore, which was Tk7.21 crore in the previous year.
Consequently, its loss per share was Tk0.16, which was Tk0.33 in 2020.
The paid-up capital of the company is Tk218.09 crore.
As of 30 September 2021, the sponsors and directors jointly hold 30.24% shares, institutions hold 14.80% shares and the general public holds 54.96% shares in the company.
The last trading price for shares in the company at the Dhaka stock exchange was Tk12.70 on Monday.
