Bagir's Shandong Ruyi deal delayed, trading improves
Tailoring specialist Bagir has announced that the investment it’s getting from Shandong Ruyi has been delayed but that trading has improved in recent months.
The company said that it’s “taking more time than first envisaged for Shandong Ruyi to receive Chinese Government approval for its proposed $16.5 million investment into the company in return for 359,560,310 New Ordinary Shares.”
The investment would given Shandong Ruyi a 53.7% holding of the company's enlarged share capital. Its assumption of control of Bagir will come after an acquisition spree that has also included Sandro and Maje owner SMCP, Bally, Aquascutum and Cerruti 1881, as well as a partnership deal with Secoo.
It now looks like the Bagir deal won’t be complete until the end of May, at which point Shandong Ruyi will hand over the remaining cash payment of $13.2 million.
Bagir also said that it has been “trading in line with management expectations for the 12 months to 31 December” and that “as anticipated, trading in the second half has been stronger compared to the first six months, with the company recording a profitable third and fourth quarter.”
It added that its CFO, Udi Cohen, has decided to leave the company on March 10 “to pursue his other business interests.” Dotan Levy, currently group financial controller, will take on the role of acting CFO but will not become a director of the company at this time.
CEO Eran Itzhak, said: "While both ourselves and Shandong Ruyi would have preferred to have completed the transaction earlier, both companies are committed to making this partnership work. Shandong Ruyi remain confident the transaction will be completed and the new completion date has been set to provide ample time for all parties.”
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