Doreen Power consolidates subsidiaries in major structural overhaul

Doreen Power Generations and Systems Limited has decided to merge three of its subsidiary companies into the parent entity in a bid to create a more efficient and sustainable business structure.

The consolidation moves, aimed at streamlining operations and reducing organisational redundancy, was formally approved by the company’s board of directors during a meeting held yesterday (7 June).

The three subsidiaries slated for the merger are-Chandpur Power Generations Limited, Dhaka Northern Power Generations Limited, and Dhaka Southern Power Generations Limited.

According to a price-sensitive disclosure filed with the Dhaka Stock Exchange (DSE), the merger will be executed entirely through cash consideration payable to the minority shareholders of the subsidiaries. Unlike traditional mergers, no new shares of Doreen Power will be issued or exchanged.

As a result, the existing capital structure, paid-up capital, and number of shares of Doreen Power Generations and Systems Limited will remain unchanged, preventing any dilution of interest for the parent company’s current shareholders.

The company stated that the consolidation is expected to enhance management oversight and significantly reduce administrative and compliance costs. “The merger aims to consolidate all operating assets and activities under a single entity, which will support long-term growth and investment opportunities,” the disclosure noted.

However, the implementation of the merger is subject to several layers of approval. It requires the consent of the shareholders and creditors of all involved companies, approval from the Bangladesh Securities and Exchange Commission, and final sanction from the High Court Division of the Supreme Court of Bangladesh under the Companies Act, 1994.

Despite the strategic move toward efficiency, investor reaction on the bourse was cautious. Shares of Doreen Power slipped 1.57% yesterday, closing at Tk31.40 on the DSE.

Financially, Doreen Power has shown an upward trend in its earnings. For the third quarter (January–March 2026), its consolidated earnings per share rose to Tk1.11, up from Tk1.04 in the same period last year. For the first nine months of the 2025–26 fiscal year, the consolidated EPS stood at Tk4.16, marking a significant increase from the Tk3.05 recorded in the corresponding period of the previous year.