Shandong Rui, the Chinese textile and garment company, has asked for more time to materialise the agreement with tailoring specialist Bagir that was first announced back in November 2017.
Though the Chinese firm had already made an investment of US $ 3.3 million, it is yet to give the remaining US $ 13.2 million so as to finalise the agreement.
According to Bagir, Shandong was supposed to pay the remaining amount by 30 May. Shandong has now asked for an extension till 18 June.
In December last year too, Bagir had granted an extension to Shandong owing to a delay in getting approval from the Government of China.
In a statement released to media on 31 May, Bagir said that though its board considers Shandong’s failure to complete the investment as a breach of the share purchase agreement, it has still agreed to grant extension till 18 June owing to the benefits the deal might bring for Bagir.
The statement also said that early this year Shandong had promised to give manufacturing equipment for Bagir’s unit in Ethiopia but unfortunately Shandong failed to fulfil this promise too.
Bharat Tex Special Report 2026 
