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.
Haroon Ahmed Khan, chief executive officer (CEO) of Waves Singer Pakistan, has bought the bankrupt Samin Textiles to turn it around into a large retail company. Photo courtesy Mettis News
LAHORE: Haroon Ahmed Khan, chief executive officer (CEO) of Waves Singer Pakistan, has bought the bankrupt Samin Textiles to turn it around into a large retail company with a strong e-commerce platform through an initial injection of Rs250 million.
According to a bourse filing, Samin Textiles, which was shut down in August 2018, has requested the Pakistan Stock Exchange (PSX) to help it get its shares unfrozen by the CDC for their transfer to Mr Khan, who also owns more than 38pc holding in WSPL, for the execution of the company’s revival plan.