Ring Shine Textiles has officially terminated its agreement to sell 38 per cent of its shares to Wise Star Textile Mills and its nominees, a decision made by the company’s board during a meeting on Sunday. The move follows concerns over the credibility and financial strength of Wise Star, which has been operational since 2021 but has a significantly smaller paid-up capital of Taka 20,000 compared to Ring Shine’s Taka 500 crore.
The Bangladesh Securities and Exchange Commission (BSEC) had conditionally approved the deal in August 2023, but according to the report, Ring Shine’s board later expressed doubts regarding Wise Star’s capabilities and requested that the BSEC be informed to protect Ring Shine’s interests.
Ring Shine, which has faced financial difficulties, reported a 43 per cent drop in revenue to Taka 157 crore in FY ’24, alongside a net loss of Taka 153 crore. The company has not paid dividends since FY ’19 and has accumulated negative retained earnings of Taka 902 crore.
