Ring Shine Textiles has decided to terminate its share purchase agreement with Wise Star Textile Mills as it doubts that the latter would be able to carry out the deal.

This decision, taken at Ring Shine's 105th board meeting on Sunday, aims to safeguard stakeholders' interests, according to a disclosure on the Dhaka Stock Exchange.

The agreement, which was conditionally approved by the country's stock market regulator in August 2023, would see Wise Star and five Singapore-based companies buy 38 percent of Ring Shine's shares, including those held by sponsor-directors.

But in September that same year, Ring Shine's board expressed concerns about the credibility of Wise Star and its associates.

An official of Ring Shine informed that they found a massive gap in the two companies' paid-up capital, casting doubt on Wise Star's ability to complete the purchase.

Ring Shine confirmed that no financial transactions or considerations have occurred between the two parties and clarified that Wise Star Textile and its nominees do not hold any shares in the company.