Kapita Packaging to acquire Yeakin Polymer

Kapita Packaging Solutions Limited has received the regulator’s consent to acquire Yeakin Polymer Limited, a listed company.

The Bangladesh Securities and Exchange Commission (BSEC) sent conditional approval letters in this regard to both companies on May 12.

Yeakin Polymer’s entrepreneurs own 30.52 percent shares of the company. The total number of these shares is 2,21,93,000.

The acquisition will proceed at a face value of Tk 10 per share. These shares will be traded outside the trading system of the stock exchange.

However, BSEC has given some conditions. Among them, a new board will be formed after the transfer of shares in the name of Capita Packaging.

Each member of the board must have at least 2 percent shares. At the same time, the directors will hold a minimum of 30 percent of the total shares.

The transfer of shares must be implemented within 30 days of the issuance of this directive.

The new board will take steps to reduce the company’s debt burden, the directive said. At the same time, the new board will also take responsibility for the bank loan of Tk 33.95 crore.

In addition, within two months of the transfer of the shares, the buyers must guarantee that the company will start production.

Yeakin Polymer Limited was listed on the stock exchange in 2016.