Regulator grants BSRM merger with its non-listed entity

The securities regulator has approved the acquisition procedure of listed BSRM Steels Limited with the non-listed BSRM Steel Mills Ltd.

After the merger, the paid-up capital of Bangladesh Steel Re-Rolling Mills Limited will be increased to over Tk 298 crore from the existing Tk 236 crore, said the Bangladesh Securities and Exchange Commission ( BSEC) in a statement on Monday.

Bangladesh Steel Re-Rolling Mills Limited, the transferor company, will issue more than 6 crore shares worth Tk 10 each against over 39 crore shares of BSRM Steels Limited, it said.

The approval was given as per the High Court order, said the BSEC.

The merger will reduce the corporate taxes, as non-listed companies need to pay 30 percent corporate tax while listed companies pay 22.5 percent.

On Wednesday, the share price of BSRM Steels fell 1.14 percent to Tk 52 compared to the previous day’s Tk 53.5 on the Dhaka Stock Exchange.

Last year, the board had decided to acquire a 100 percent stake of BSRM Steels by issuing shares against the rest of the stakes (55.03 percent) of the steelmaker after completion of all legal and regulatory formalities. Before the merger, Bangladesh Steel Re-Rolling Mills Limited held a 44.97 percent share of BSRM Steels.

In 2017, BSRM Steels, the flagship company of BSRM Group, merged with BSRM Steel and Iron Company.