Shares of RN Spinning Mills topped the list of winners on the Dhaka Stock Exchange (DSE) yesterday after announcing it would merge with its unlisted sister company as it seeks to resume production.
Yesterday, the listed spinning mills announced their merger with Samin Food & Beverage Ind. & Textile Mills Ltd. Its shares closed up 10 percent at Tk 6.60.
The company’s production has been shut down since 2019, when a fire destroyed production plants, inventory and other support facilities at the plant, which is located in the Cumilla export processing area.
“The fire devastated the company and we could not find the insurance compensation. So the merger decision was taken as part of the efforts to resume production,” said Raquibul Islam, secretary. General of RN Spinning Mills.
“The merger may improve the strength and capital base of the company. We will need to get approval from other regulators.”
RN Spinning Mills suffered a loss of Tk 607 crore in 2018-19 due to the fire. The company’s cumulative loss stands at Tk 446 crore, DSE data showed.
Following the merger, the plant will be transferred to the premises of Samin Mills in Gazipur.