The Bangladesh Securities and Exchange Commission (BSEC) has once again approved for the transfer of sponsor-director shares from publicly listed Yeakin Polymer Limited to Kapita Packaging Solutions Limited, a non-listed company.
Initially permitted in May 2022, the transfer faced delays as Yeakin Polymer failed to execute the transaction within the specified timeframe, rendering the BSEC’s consent time-barred and non-executable.
Subsequently, Yeakin Polymer reapplied to the commission for an extension of the approval, and on December 21, 2023, received the necessary consent to proceed with the off-market share transfer.
As outlined in the BSEC document, the new sponsor-directors are required to collectively maintain a minimum 30% holding at all times. The transferred shares will be locked in the beneficiary owners’ (BO) account, with no allowance for margin loans against them.
To facilitate the share transfer, the shares must be unblocked. Following the completion of the transfer, the shares will be relocked, preventing the new owner from selling them without prior regulatory approval.
Yeakin Polymer, engaged in the production of poly sacks, has faced challenges since 2018. In efforts to revive the company’s business, Kapita Packaging intends to acquire a 30.11% stake, equivalent to 2,21,93,745 shares, from the sponsor-directors of Yeakin Polymer at the face value of Tk10 each.
However, before selling the shares, the outgoing sponsor-directors of Yeakin Polymer must obtain no-objection certificates (NOCs) from various lenders owed nearly Tk34 crore by the company.
