Singer Bangladesh to issue Tk250cr preference shares to repay debt

The company incurred a net loss of Tk77 crore in the third quarter of this year.

Singer Bangladesh Limited has decided to raise capital by issuing perpetual, non-cumulative, non-convertible and non-voting preference shares worth up to Tk250 crore.

According to the company’s disclosure filed with the Dhaka Stock Exchange (DSE) today (27 October), the issue comprises up to 25 crore shares priced at Tk10 each at par.

The electronics manufacturer will issue the shares through a private placement to its sponsor shareholder.

The company plans to use the proceeds to refinance existing debt, ease its debt burden and support its working capital needs.

Dividends on these preference shares will be non-cumulative and payable only if, and to the extent that, they are declared at the discretion of the board of directors. As the shares are perpetual, shareholders will not be entitled to demand their redemption.

Alongside the preference share issuance, the company’s board has recommended doubling its authorised share capital to Tk500 crore from the existing Tk250 crore.

Both proposals are subject to approval by shareholders at an Extraordinary General Meeting (EGM) scheduled for 15 December, as well as final consent from the Bangladesh Securities and Exchange Commission (BSEC).

In a separate disclosure, the company said it had incurred a net loss of Tk77 crore in the third quarter of this year.

Following the announcement of the quarterly loss, Singer Bangladesh’s share price fell by 5.71% to Tk71 on the DSE today.

Source: The Business Standard