SS Steel on Thursday announced its plan to enter the ceramic business by acquiring a 75 per cent stake in Southeast Union Ceramic Industries for Tk 200 crore.
This would be the second acquisition by the 19-year-old steel manufacturer in six months.
Earlier in August, the company announced its plan to acquire Saleh Steel Industries for Tk 158.75 crore with the view to staking a larger claim on the Tk 55,000 crore-industry. Of the sum, Tk 24.75 crore was equity investment for 99 per cent stake. Another Tk 134 crore would be invested for the smooth operation of the company.
The China-Bangladesh joint venture ceramic manufacturer has a ceramic tiles manufacturing factory located at Katakhali, Bagerhat in Khulna with a yearly production capacity of approximately 9.6 crore square feet.
Southeast Union Ceramic has a paid-up capital of Tk 10 crore and a yearly turnover of approximately Tk 400 crore, according to Md Mostafizur Rahman, company secretary of SS Steel.
A share purchase agreement will be signed with the company after shareholders provide their approval in an extraordinary general meeting.
The details of the extraordinary general meeting will be provided at a later date, he added.
The news sent SS Steel’s stock price soaring about 9.1 per cent yesterday before closing at Tk 22.8, up 3.6 per cent from the previous trading session.
Listed in 2019, SS Steel’s stock price has been on an ascent since November 18. Since then, it gained 72.7 per cent.
Between July and September last year, the company logged in Tk 18.6 crore as profit, down 3.6 per cent year-on-year.
