Shandong Ruyi picks majority stake in Bagir

Bagir has announced that Shandong Ruyi Technology Group will be investing 16.5 million dollars in the company to acquire 54 percent of Bagir’s enlarged issued share capital. The company added that Chinese textile major will be a majority shareholder in the company and one or more director(s) will be nominated by Shandong Ruyi Group to join the board of Bagir.

Commenting on the development, Eran Itzhak, Chief Executive Officer of Bagir said in a statement: “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.”

Bagir inks strategic partnership with Shandong Ruyi

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

Under the proposed agreement, Bagir said, Shandong Ruyi Group will subscribe for 359,560,310 new ordinary shares at approximately 3.5p 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 percent premium to the price of 1.375p per ordinary share at the point trading in the shares was suspended on Monday 20 November 2017 at 12:10.

Founded in 1972, Shandong Ruyi Group is one of the largest textile manufacturers in China. Headquartered in Jining, Shandong, the group operates 13 domestic industrial parks and boasts some of the largest production lines and advanced technologies in China. Shandong Ruyi Group also operates over 4,000 points of sales (POS) that services a global customer base spread across six different continents.

Picture:Facebook/Bagir Group Ltd