Dhaka and Chittagong stock exchanges have suspended the trading of Beximco Synthetics Ltd., a producer of polyester yarn that suffered a long spell of losses.
The bourses said the decision was in the “interest of investors,” citing an order from Bangladesh Securities and Exchange Commission on Tuesday.
The company that was listed on the Dhaka Stock Exchange in 1993 and on the CSE in 1995 could not declare any dividend since 2013 as it passed through “extremely difficult times”, it said in a separate statement.
The company said it regularly declared dividends from 1996 to 2013 without any interruption.
Beximco Synthetics produced and sold drawn textured yarn, a type of polyester yarn, but its business was hampered by the reduction of duties on the cheaper imported product, the company said.
“Unfortunately, despite its best efforts, the company could not maintain targeted production and profitability during the last seven years which resulted in the company accumulating huge losses. This has resulted in the shares of the company being traded below face value for a number of years,” Beximco Synthetics said.
Finally, the company ceased production and shut down the plant. It retrenched all the workers and most of the officers and staff after paying all their dues as per law, according to the statement.
“Under these circumstances, although it is extremely painful but having no other option, the Board of Directors feel that the company should delist itself from the DSE and CSE. Since there are no clear rules for a company to delist from the stock exchanges, the company has written to Bangladesh Securities and Exchange Commission for guidance in this matter.”
Source: bdnews24.com
