Premier Cement Mills PLC of Bangladesh has decided to absorb two of its concerns, National Cement Mills and Premier Power Generation, in a bid to streamline and optimise operational efficiencies.
Having reached this decision at a board meeting on 13 March, the company announced its plans for the merger through a disclosure on the Dhaka Stock Exchange (DSE) website on 16 March 2025. Premier Cement will be the sole surviving entity of this merger, which involves exchanging its shares with that of the two subsidiaries, according to Company Secretary, Kazi Md Shafiqur Rahman.
Premier Cement Mills PLC will be the sole surviving entity of this merger, which involves exchanging its shares with that of the two subsidiaries, according to Mr Rahman. "It [the merger] is not just an administrative change but in reality, it will provide significant advantages in terms of improving operational efficiency," he said.
He also said the merger will lead to substantial cost savings and synergy between the companies by reducing administrative overheads and improving knowledge-sharing between teams, thereby enabling more seamless operations.
"If a company does not have its own power generation setup, it cannot claim VAT rebates on gas bills. So, once Premier Power falls under Premier Cement's umbrella, we will be able to take advantage of this rebate," he added.
As a part of the merger, the existing shareholdings of National Cement and Premier Power will be restructured. At present, Premier Cement holds an 18 per cent stake in National Cement while it has a 96 per cent stake in Premier Power. Following the merger, these entities will cease to exist separately, and Premier Cement will assume full control.
