Tailoring group Bagir has announced that it has agreed the terms of a strategic partnership, under which Chinese textile company Shandong Ruyi will take a majority stake in the company for $16.5m (£12.8m)
Under the proposal, which has been recommended to shareholders, the investment will be used to expand manufacturing facilities in Ethiopia and compete for apparel contracts from large international retailers. Shandong Ruyi will take a 54% stake in the business.
Bagir said the strategic partnership “has the potential to have a transformational effect on the operations and the prospects of the group, from which all shareholders and depositary interest holders will benefit”.
Eran Itzhak, chief executive officer of Bagir, said: “We are delighted to be putting this proposal to our shareholders as we believe it to be transformative, creating a platform from which Bagir has the potential to become a significant player in our market of apparel manufacturing.”