Tawianese garment manufacturer Quang Viet Enterprise Co Ltd plans to purchase 13.65 million new shares issued by King Hamm Industrial Co Ltd at NT$24.5 ($0.82) each. Quang Viet is the world’s second largest down jacket supplier — behind South Korea’s Youngone Corp — manufacturing high-end down jackets for companies including Nike, Adidas and North Face.
The Taipei headquartered company will invest NT$334.425 million ($11.14 million) in a rights issue by King Hamm, which is headquartered in New Taipei City’s Sinjhuang district, according to a Quang Viet filing with the Taiwan Stock Exchange.
This will give Quang Viet a 42 per cent stake in King Hamm, which supplies high-end swimwear and functional wear to global brands like Under Armour and North Face.
The deal is expected to create synergies and enhance Quang Viet’s competitiveness in the knitwear sector, Taiwanese media reports said. It would also expand Quang Viet’s production base in Vietnam, where King Hamm has two manufacturing units.
However, the date for closure of the transaction was not disclosed.
Last month, Quang Viet had announced that it would purchase a 60 per cent stake in Jordan-based knitwear maker Atlanta Garment Manufacturing Co. (RKS)
Fibre2Fashion News Desk – India