Walton Hi-Tech Industries PLC, a listed electronics and home appliances manufacturer, on Sunday said its board has approved a proposed merger with its sister concern, Walton Digi-Tech Industries Ltd.
The decision was taken at a board meeting held on Thursday, the company said in a disclosure to the Dhaka Stock Exchange.
The approval follows an earlier memorandum of understanding signed in September last year for the proposed merger.
The merger will be subject to approvals from the Bangladesh Securities and Exchange Commission (BSEC), the High Court Division of the Supreme Court of Bangladesh, other regulatory authorities, and the shareholders and creditors of both companies.
The company said necessary agreements will be executed to maintain a distinct brand identity for Walton Hi-Tech Industries.
Walton Digi-Tech Industries, a Bangladeshi IT product manufacturer with more than eight years of operations, is recognised as the only full-fledged hi-tech IT manufacturing company in the country.
According to Bangladesh Investment Development Authority enlistment, the company offers over 123 products across multiple segments under 36 own brands.
As per its audited financial statements for the year ended June 30, 2024, Walton Digi-Tech Industries had a paid-up capital of Tk30 crore, revenue of Tk1,016 crore and net profit after tax of Tk18.14 crore.
Walton Hi-Tech Industries, which went public in 2020, reported revenue of more than Tk7,500 crore and net profit of Tk1,356 crore in fiscal year 2023–24.
The company said the terms and conditions of the merger will be finalised through a definitive agreement, while details of the merger scheme will be disclosed later.
Walton said the merger is expected to strengthen its business portfolio through vertical integration and expand its product range, including laptops, desktop PCs, printers, mobiles, printed circuit boards, IT accessories and electric bikes.
Meanwhile, Walton Hi-Tech Industries also disclosed its half-yearly financial results for the six months ended December 31, 2025, showing mixed quarterly performance but improved overall profitability.
Earnings per share declined to Tk4.27 in October–December 2025 from Tk4.66 a year earlier, while EPS for July–December rose to Tk10.90 from Tk9.14.
Net operating cash flow per share increased sharply to Tk19.41 for the six-month period, compared with Tk6.30 in the same period of the previous year.
Net asset value per share without revaluation stood at Tk257.24 as on December 31, 2025, down from Tk262.08 on June 30, while NAV with revaluation fell to Tk358.41 from Tk363.40.
The company said higher half-yearly earnings were driven by increased sales revenue, stable foreign exchange rates and improved inventory management.
The rise in cash flows was attributed to higher customer collections and lower payments to suppliers, despite increased payroll costs and higher value-added tax following the revision of VAT rates on refrigerator and air conditioner products.
