Shepherd Industries to amalgamate with sister concern

Shepherd Industries Ltd is going to amalgamate with its sister concern Shepherd Textile BD Ltd (STBL). 

An amalgamation is a combination of two or more companies into a new entity.

In a filing on the Dhaka Stock Exchange yesterday, Shepherd Industries said its board had approved the decision of amalgamation.

Upon completion of the amalgamation, Shepherd Industries will be the surviving entity.

The decision is subject to approval by the banks, other creditors and shareholders of the company and other stakeholders and sanction of the scheme of amalgamation by the High Court Division, the post said.

Established in 2000, Shepherd Industries is engaged in the dyeing of different counts of yarn and marketing of the processed yarn to various sweater industries in Bangladesh as a deemed exporter, according to its prospectus for the initial public offering. The company went public in 2017.

It suffered losses in the financial year of 2019-20 and 2020-21, data from the DSE showed. It posted profits in the July-March period of the last financial year, which ended in June.

Shares of Shepherd Industries were down 4.43 per cent at Tk 25.90 on the DSE yesterday.