Home / Knowledge / News / Textiles / Shangdong Ruyi to acquire major stake in Bagir
Shangdong Ruyi to acquire major stake in Bagir
24
Nov '17
Courtesy: Shangdong Ruyi
Courtesy: Shangdong Ruyi
Shangdong Ruyi Technology Group Ltd, one of the leading Asian global textile manufacturers, has entered in a strategic partnership with Israel-based Bagir Group Ltd, a designer, creator and provider of innovative tailoring, alongside a proposed investment of $16.5 million to acquire 54 per cent of the company's enlarged issued share capital.

"Through forming this strategic partnership with Shandong Ruyi Group together with the significant increase in capital, the transaction has the potential to transform the company and its ability to compete and win major apparel manufacturing contracts from the world's largest retailers," Bagir said in a press release.

Shandong Ruyi will be a majority shareholder in the company and one or more director(s) will be nominated by Shandong Ruyi to join the board of Bagir, subject to the completion of the necessary regulatory due diligence. Under the proposed agreement Shandong Ruyi will subscribe for 359,560,310 new ordinary shares at approximately 3.5 pence per share. The issue price is approximately the same price as Bagir's last fundraising round, carried out in December 2016 and represents a 155 per cent premium to the price of 1.375 pence per ordinary share. The transaction is subject to the approval of Bagir's shareholders.

The new capital will be used partly to expand significantly the suit trouser and establish the jacket production lines in the Bagir's duty free and cost-competitive Ethiopian manufacturing base, enhance R&D and innovation activities and provide the working capital to support the growth.

"It has been our view for some time that Ethiopia is proving to be potentially transformational. The Shandong Ruyi Group team recognises the strength and experience that we have across our business and it is our advanced position in Ethiopia which they have identified as providing them with a global strategic advantage. With Shandong Ruyi Group as a key shareholder and partner we believe that Bagir will be best placed to exploit the opportunity presented by our Ethiopian manufacturing base far quicker and with more certainty than we could independently," Eran Itzhak, chief executive officer of Bagir.

Shandong Ruyi Group also has significant distribution with more than 4,000 points of sales (POS) network that services a global customer base spread across 6 different continents. Shandong Ruyi Group has over 20 subsidiaries, with three listed subsidiaries in China, France and Japan. (RR)

Fibre2Fashion News Desk – India


Must ReadView All

Trump announces tariffs on $200 bn worth Chinese imports

Apparel/Garments | On 18th Sep 2018

Trump announces tariffs on $200 bn worth Chinese imports

US President Donald Trump escalated the trade war with China on...

Courtesy: Sunrise Bumi Textiles

Textiles | On 18th Sep 2018

Sunrise Bumi developing new products for profitability

Sunrise Bumi Textiles, one of the world's leading quality yarn...

New Zealand bans sheep mulesing

Textiles | On 18th Sep 2018

New Zealand bans sheep mulesing

New Zealand has banned the practice of mulseing sheep, making the...

Interviews View All

Ajay Ghariwala, Luthra Group

Ajay Ghariwala
Luthra Group

We are ready to adopt or follow every opportunity

Nishank Patel, Shri Dinesh Mills Limited

Nishank Patel
Shri Dinesh Mills Limited

Broad range of fabrics will sell well this financial year

Saket Garg, Garg Corporation

Saket Garg
Garg Corporation

The biggest challenge is lack of skilled workforce and competition from...

Tina Antoniades,

Tina Antoniades

India-headquartered Lulu & Sky is a rapidly escalating brand with the...

Gagan Gulati,

Gagan Gulati

PG Silk Mills Private Limited had a humble start with a hand-dyeing unit....

Karan Behal,

Karan Behal

Karan Behal, founder and chief executive of top-selling brand...

S Ziya Gumuser, Teknomelt

S Ziya Gumuser
Teknomelt

Turkish nonwoven manufacturer Teknomelt has been around for only seven...

Steve Cole, Xerium Technologies

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Larry L Kinn, Suominen Corporation

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Robert Brunner, Devereux

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Aditi Somani, Aditi Somani

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

Prathyusha Garimella, Prathyusha Garimella

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


September 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search