Shandong Ruyi terminates Masood Textile investment offer
October 09, 2014 (Pakistan)
The Shandong Ruyi Technology Group of China led investors have terminated their offer to invest in Pakistan-based Masood Textile Mills Limited.
On December 10 last year, the Shandong Ruyi Technology Group, Shahid Nazir Ahmad and Nazia Nazir announced their intention to acquire 31.2 million ordinary shares or 52 percent stake in Masood Textile Mills, a Faisalabad-based vertically-integrated textile manufacturing company possessing in-house facilities for yarn, knitting, fabric dyeing, processing, laundry and apparel manufacturing.
Subsequently, the proposal was approved by the Competition Commission of Pakistan (CCP), the Chinese Ministry of Commerce (MoC), the National Development and Reform Commission (NDRC) of China, as well as the State Administration of Foreign Exchange.
In a filing to Karachi Stock Exchange, both parties said, “As … the conditions required to be fulfilled under the Share Purchase Agreement (SPA) between the sellers and the acquirers have not been fulfilled for proceeding with the acquisition transaction within the agreed timelines, the completion of the transaction is no longer possible under the terms of the SPA.”
The companies further said that they have decided not to pursue the transaction any further and have mutually terminated the agreement.
Shandong Ruyi Technology Group, based in the Shandong province of China, is one of the top ten Chinese enterprises in the textile industry involved in textile and clothing, cotton textile, cotton printing and dyeing, knitting, fiber, and jeans. The company also has a state-grade technical center and research and development (R&D) department.
Masood Textile Mills is one of the few vertically integrated textile mills in Pakistan with annual production capacity of about 120,000 dozen per month of fashion garments like Polo, Rugby and Henley shirts along with basic garments like crew neck t-shirts, sweat shirts, boxer shorts and bikinis. (RKS)