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Shandong Ruyi to acquire Masood Textile Mills

06 December, 2013

KARACHI: A Chinese textile giant, Shandong Ruyi Technology Group Co Limited, on Thursday has announced its intention to acquire up to 52 percent ordinary shares of Masood Textile Mills Limited (MTM).

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KARACHI: A Chinese textile giant, Shandong Ruyi Technology Group Co Limited, on Thursday has announced its intention to acquire up to 52 percent ordinary shares of Masood Textile Mills Limited (MTM).

The company sent a letter to Karachi Stock Exchange, in which it stated that Shandong Ruyi Technology has intended to acquire up to 3.12 million ordinary shares of MTM constituting approximately 52 percent of the issued shares of the target company through an agreement/public offer.

While the public announcement of intention to acquire is intended to be published on December 10, 2013 in mainstream newspapers in accordance with Section 9(1) of the Listed Companies Ordinance, 2002 and the Regulations thereof.

The total number of shares to be acquired by the acquirer may be subject to a change in light of the public offer process to be complied by the Acquirer as per the provisions of the Listed Companies Ordinance 2002.

It is pertinent to mention here that MTM is a Pakistan-based company engaged in the manufacturing and sale of cotton or synthetic fibre yarn, knitted or dyed fabrics and garments. The company operates in three business segments: spinning segment, which involves in the production of variety of yarn; knitting segment, which involves in the production of knitted fabric from yarn, and processing and garments segment, which involves in the processing of greige for production of dyed and white fabric, and manufacture of garments from processed fabric.

On the other hand, Shan Dong Ruyi Group 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.

Earlier in this year, Chinese company Shan Dong Ruyi group already expressed its interest in establishing a ginning and spinning industry as a joint venture with Pakistan Cotton Ginners Association.

Now, the company has decided to enter in Pakistan's textile sector through the acquisition of a local textile group MTM.

MTM has wide customer range across the world including world famous brand Addidas, Puma, Levis, Hollister, Dockers, Reebok and many other distinguished garments brands.

As far as MTM growth is concerned, the company has been witnessing notable growth for last several years, as at the end of the year 2012 the company's turnover was at Rs 19.3 billion that was 144 percent higher than Rs 7.8 billion turnover in 2008.

End.


 
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