Zaheen Spinning revises rights offer proposal

Dhaka,  Tue,  26 September 2017
Published : 20 Aug 2017, 21:09:23

Zaheen Spinning revises rights offer proposal

FE Report

The board of directors of Zaheen Spinning has revised its rights offer proposal which would be for 98,552,700 ordinary shares instead of 85,698,000 ordinary shares, said an official disclosure on Sunday.

Earlier, the company proposed to issue one rights share for one existing share and suppose to raise Tk 856,980,000 through rights issuance.

"While the proposal of rights share is still pending with securities regulator and since the board of directors of the company has recommended 15 per cent stock dividend, paid-up capital will be increased to Tk 985,527,000 subject to approval of shareholders in the annual general meeting (AGM)," said the disclosure posted on the Dhaka Stock Exchange (DSE).

The disclosure noted that in line with the previous resolution adopted in the extraordinary general meeting (EGM) held on July 16, 2017, the revised rights offer would be for 98,552,700 ordinary shares of Tk 10 each at an issue price of Tk 10 each per share totaling Tk 985,527,000 offered on the basis of one rights share for one existing share held on the record date for entitlement.

According to the disclosure, fund to be raised through rights issue will be utilized for the following purposes: expansion of the existing project Tk 766,027,000, working capital Tk 150,000,000, partial repayment of term loan Tk 50,000,000, rights issue expenses (approx) Tk 19,500,000. Total utilization of the rights issue fund Tk 985,527,000.

Meanwhile, the board of director has recommended 15 per cent stock dividend for the year ended on June 30, 2017.

The final approval will come during the AGM scheduled to be held on October 5 at 9:00am at Sughandha Community Centre at Dhanmondi in Dhaka.

The record date for entitlement of stock dividend is on September 13.
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