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29 March 2024


Business Insider Bangladesh

Malek Spinning to issue bonds, purchase land

BI Report || BusinessInsider

Published: 21:33, 23 June 2022  
Malek Spinning to issue bonds, purchase land

Malek Spinning Mills logo

Malek Spinning Mills, a listed company on the stock exchange, is going to issue zero-coupon bonds to purchase lands for new projects.

The company announced the decisions on Thursday through the Dhaka Stock Exchange (DSE).

The company will issue zero-coupon bonds worth Tk 290 crore to finance expansion and reduce debts related to the expansion.

It will issue the bonds after the approval of the regulatory body Bangladesh Securities and Exchange Commissioner (BSEC).

On the other hand, Malek Spinning Mills will purchase 55 bighas or 1,815 decimals of land in Bhaluka, Mymensingh for Tk 55 crore.

The company informed that the board of directors decided to purchase this land from its Directors/Related parties on a fair market price basis, which may exceed l percent or above of the total tangible assets shown in the statement of financial position as of the end of the immediate preceding financial year.

The company has further informed that the board of directors has approved the proposal of JM Fabrics Ltd — a subsidiary company of the Malek Spinning to purchase land measuring an area of 954.94 decimals situated at Bahadurpur of Gazipur Sadar, at a total consideration of approximately Tk 47.70 crore including registration cost for the future expansion of the business of JM Fabrics Ltd.

The investment of Tk 47.70 crore would be met from the internal generation of funds by JMFL.

The Company also informed that they will not be required to provide any funds in this regard.

Besides, the company informed that the board of directors approved the proposal of Salek Textile Limited (STL), a subsidiary company of the Malek Spinning for recovery of the insurance claim for Tk 21,12,88,104 as a final settlement against the claim was Tk 30,47,91,187 for losses by fire at Fabric Unit.

The company also informed that the above amount will be utilised against the repayment of a term loan of the company.

Nagad
Walton