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Bagir urges patience on Shandong Ruyi deal
Tailoring company Bagir updated the market on its proposed strategic partnership with textiles manufacturer Shandong Ruyi Technology Group on Wednesday, under which Shandong Ruyi would invest $16.5m to acquire 54% of Bagir's enlarged issued share capital.
The AIM-traded firm had said that at the time of its final results announcement on 7 March that it had prepared the necessary shareholder circular and notice of an extraordinary general meeting in order to approve the full investment by Shandong Ruyi Group, and was waiting for details of the proposed directors to be nominated by Shandong Ruyi in order to dispatch the circular to shareholders.
It said in Wednesday that Shandong Ruyi had subsequently provided details of certain proposed directors to be nominated to Bagir's board, and it remained in discussions on the exact composition of the board moving forwards.
"At the same time, Bagir awaits Shandong Ruyi's confirmation on certain information to be included in the circular as well as the confirmation of which entity within Shandong Ruyi's group is proposed to be the shareholder in Bagir," the Bagir board said in its statement.
"Bagir looks forward to being able to update its shareholders on the timing of when it will receive the necessary confirmations from Shandong Ruyi so as to enable Bagir to be able to post the circular to shareholders."
At present, its board said there could be no guarantee on when those confirmations would be received.
"The desire from both companies to complete this transaction remains unchanged, meeting the requirements and the process associated with doing so has taken longer than first anticipated," said CEO Eran Itzhak.
"However, both Ruyi and ourselves are confident we will complete this deal and that it will prove to be a valuable and productive partnership."