Keya Knit Composite Ltd. and Keya Spinning Mills Ltd. and Keya Cotton Mills Ltd. agreed to acquire Keya Cosmetics Limited (DSE:KEYACOSMET) in a reverse merger transaction on October 20, 2013. Under the terms of the transaction, Keya Cosmetics Limited will issue 321.95 million shares. The deal is subject to approval of the Supreme Court of Bangladesh and shareholders of Keya Cosmetics. Keya Cosmetics shareholders approved the deal on November 3, 2013. The High Court has approved the proposed amalgamation on December 7, 2014. The Board of Directors of Keya Cosmetics approved the transaction on January 7, 2015.

The Board of Directors of Keya Cosmetics and three other companies have already set December 21 as the record date for the exchange of shares of the companies. The amalgamation may have a negative impact on the earnings, profitability and dividend distribution of Keya Cosmetics.