FE Report

The Securities and Exchange Commission (SEC) has approved ordinary shares issuance of Bextex, textile arm of leading industrial conglomerate Beximco Group, against its loan repayment to the local and foreign lenders.

The approval came in the commission meeting held Tuesday. Bextex will be the first such company in the country, which will issue ordinary shares against its loan repayment.

However, the consent has been accorded subject to the condition that the company shall comply with the relevant laws and regulatory requirements of Bangladesh and other concerned jurisdictions and shall also adhere to the conditions imposed by SEC under section -2CC of the SEC, 1969.

There will be no benefit for the shareholders as the shares will be diluted after issuance of shares, according to the experts.

The Bextex Ltd will issue 19,84,93,416 ordinary shares of Tk 10 each at Tk 32 per share for raising its paid-up-capital from Tk 2.08 billion to Tk 4.06 billion favouring New England Equity Limited (NEEL) and Beximco Group of companies or their assignees or the assignees's nominees for the purpose of repayment of outstanding loans of the said lending companies.