BSEC clears merger of two Walton companies

The stock market regulator has said it has no objection to the proposed merger of two companies of Walton Group.

Local electronics giant Walton disclosed the development on the website of the Dhaka Stock Exchange (DSE), saying that the Bangladesh Securities and Exchange Commission (BSEC) had raised “no objection” to the proposed merger.

According to the company, the merger of listed Walton Hi-Tech Industries PLC with non-listed Walton Digi-Tech Industries will expand the overall business portfolio, reduce operational costs, and improve efficiency.

In January, Walton Hi-Tech Industries PLC announced plans to merge with Walton Digi-Tech Industries.

Walton Hi-Tech Industries manufactures, markets and exports a range of home and electrical appliances, including refrigerators, compressors, air conditioners, televisions, elevators, fans, cables and washing machines.

Walton Digi-Tech Industries, an IT company operating for more than eight years, produces advanced technology products across several categories. It currently offers more than 123 products under 36 brands, according to the Bangladesh Investment Development Authority (Bida).

The merger will bring a wide range of digital technology products into the listed company’s portfolio, including laptops, computers, mobile phones, printed circuit boards and electric bikes.

Walton Hi-Tech Industries reported a fall in profit for the financial year that ended on June 30, 2025, citing weaker consumer demand and higher finance costs.

The company posted a profit of Tk 1,036.62 crore for the year, a decline of 24 percent compared with the previous year.

The board of directors recommended a 175 percent cash dividend and a 10 percent stock dividend for FY25, the lowest payout since 2020, when the company declared a 200 percent dividend.

Yesterday, Walton shares slipped 0.46 percent to Tk 385 at the DSE.