LAHORE: The recent acquisition of the three bankrupt publicly listed textile companies by private investors with the confirmed intention of merging their unlisted businesses into them underlines the consolidation of the trend of ‘reverse mergers’ in the country’s stock market.
The recent bourse filings by the companies show that majority stake in Ravi Textiles has been acquired jointly by the owners of Chaudhry Steel Re-Rolling Mill and BECO Steel Re-Rolling Mill for Rs30 million at a share price of Rs1.905 along with its management control.
The acquisition will allow the new owners to merge their steel business and rename it as Beco Steel, swapping over Rs3 billion worth of their assets into Ravi Textiles through the merger. They will also issue 101m shares at Rs30 per share to raise new capital.