Paramount Textile PLC has decided to convert its investment in subsidiary Dynamic Sun Energy Pvt. Ltd. into preference shares as part of a financial restructuring for the company’s 100-megawatt solar power project.
The textile manufacturer disclosed the decision in a filing with the Dhaka Stock Exchange (DSE) on Thursday, saying its board approved the move unanimously at a meeting held on June 30.
Dynamic Sun Energy is a subsidiary in which Paramount Textile holds a 60 percent stake. The company is implementing a 100MW solar power project, for which Paramount has already made substantial investments.
Under the board’s decision, nearly Tk 200 crore of the investment will be converted into convertible, non-redeemable preference shares. A total of 20 crore preference shares will be issued at a face value of Tk 10 each, carrying an annual 9 percent dividend (coupon). The shares will be convertible into ordinary shares within five years of allotment.
In addition, around Tk 93.01 crore will be converted into non-convertible, redeemable preference shares. The subsidiary will issue 9.301 crore preference shares, also priced at Tk 10 each, with an annual 9 percent dividend. These shares will be redeemed within five years from the date of allotment.
According to the company, the restructuring is intended to strengthen the financial foundation of the solar power project and support its long-term sustainability.
