Kuits advises listed textiles manufacturer on strategic partnership27 Nov 2017
Manchester commercial law firm Kuits has advised Bagir Group Ltd. on a strategic partnership with leading global textiles manufacturer Shangdong Ruyi Technology Group Ltd (Shandong Ruyi).
As part of the agreement, China-based Shandong Ruyi is investing $16.5 million to acquire 54% of the company’s enlarged issued share capital (approximately 51% fully diluted).
Shandong Ruyi Group has substantial retail and textile investments globally and is therefore well positioned to provide Bagir with significant new commercial opportunities. Through forming this strategic partnership with Shandong Ruyi together, with the significant increase in capital, Bagir has the potential to transform its business and its ability to compete and win major apparel manufacturing contracts from the world’s largest retailers.
Bagir, which was first admitted to AIM in April 2014, was established in 1961 in Israel. The company develops and markets high quality men and women’s tailored fashion, distributing globally.
Kirsti Pinnell, corporate partner for Kuits, advised Bagir on the UK aspects of the transaction.
She commented: “This strategic partnership will enable our client to take commercial advantage of opportunities in the global textiles market and improve its supply chain efficiency. We are delighted to have been able to use our comprehensive and considerable experience in capital market work and investments to bring these two successful companies together for mutual benefit.”