Aiming to expand its business portfolio further, Regent Textile Mills Limited is all set to acquire 99 per cent stake in Legacy Fashion.
For this, Regent Textile Mills will spend Taka 83.01 crore, the value of which has been determined based on the company’s net asset value.
The Board of Directors of Regent Textile Mills has decided to use its Initial Public Offering (IPO) fund to acquire 99 per cent shares of Legacy Fashion Limited, its own entity.
Both the companies are concerns of the Habib Group.
As per the Company Secretary of the Regent Textile Mills, Riajul Hoque Sikder, with the aim of building forward linkage of textile that would necessitate setting up the composite plant, Regent Textile Mills is going to buy Legacy Fashion.
We promised our investors in IPO period we want to transform into a composite plant and this is a step towards this goal, reportedly maintained Riajul Hoque Sikder.
Regent Textile Mills, through the websites of Dhaka and Chittagong bourse, informed its stock investors about the development recently.
The shareholders of Regent Textile Mills previously approved the company’s Taka 80 crore investment in this regard at an extraordinary meeting, while the remaining amount would come from other sources, as per media reports.
Established in 2006, export-oriented Legacy Fashion is located in the BSCIC Industrial Estate in Kalurghat, Chittagong, and has nominations from many prominent global brands and buyers.
According to reports, Legacy Fashion is clocking Taka 300 crore average turnover for the past 3 years.