Bagir agrees terms with Shandong Ruyi on major investment
The proposal will see Shandong Ruyi pay $16.5 million for more than 670 million ordinary shares, equivalent to 53.7% of Bagir’s enlarged share capital. The Chinese textile and clothing giant already has UK suit maker Gieves & Hawkes, UK clothing brand Aquascutum, France’s SMCP and Italy’s Cerruti 1881 in its portfolio, and acquired a controlling stake in Bally in February.
Bagir said the investment will be used to accelerate the development and expansion of its manufacturing facility in Ethiopia, and so will help it attract new contracts with major clothing brands. It also expects its association with Shandong Ruyi to contribute with “significant new commercial opportunities”, and increase the company’s own profile and reputation.
Bagir shareholders will vote on the proposed investment at an extraordinary general meeting to be held on 9 October in London.
The board of directors has unanimously recommended that shareholders vote in favour of the resolutions.
"We are delighted to be putting this proposal to our shareholders as we believe it to be transformative, creating a platform from which Bagir has the potential to become a significant player in our market of apparel manufacturing,” said Eran Itzhak, chief executive officer of Bagir.
Israel-based Bagir manufactures formalwear for menswear and womenswear brands and operates in six countries. The majority of the manufacturing takes place subcontracted factories in China, Jordan, Myanmar, Vietnam and Romania, and the company has a joint venture in Egypt.
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