Israeli tailored clothing maker Bagir Group has entered into an agreement with Shandong Ruyi Technology, a Chinese textile and clothing company, to get 54 percent stake in it. Shandong, becoming the majority shareholder in Bagir, will also nominate one or more director(s) to join the board of the Bagir.
Under the agreement, Shandong Ruyi Technology Group, will invest US $ 16.5 million in Bagir Group in return for 359.6 million New Ordinary Shares representing 53.7 per cent of the Bagir’s enlarged share capital. The investment was being discussed since November 2017.
This investment will help Bagir to expand its suit manufacturing line as a well established jacket production line in Ethiopia, further helping the company in getting major apparel contracts from the world’s largest retailers.
Moreover, the Shandong will be benefited with the its increased profile and reputation.The company believes that this strategic partnership will bring a transformational effect on the operation and the prospects of the Israeli company.
“We are delighted to be putting this proposal to our stakeholders as we believe it to be transformative, creating a platform from which Bagir has the potential to become a significant player on the market of apparel manufacturing,” said Eran Itzhak, Chief Executive Officer, Bagir.