March 2, 2017 / 5:42 AM / 5 months ago

HK's YGM sells Aquascutum business for $117 mln, shares jump

HONG KONG, March 2 (Reuters) - Garment manufacturing and trademark owner YGM Trading Ltd said on Thursday it would sell its high-end Aquascutum apparel business to a Chinese textile group Jining Ruyi Investment Co Ltd for $117 million, raising capital to fund new brand acquisitions.

Shares of YGM, which were suspended on Wednesday morning, rose 13.7 percent in resumed trade on Thursday afternoon. The stock jumped to HK$8.30, the highest since Oct. 28, 2016.

YGM has reached agreement to sell manufacturing, retailing and intellectual property rights of the "Aquascutum" brand as the business may continue to put pressure on its profitability, it said in a filing to the Hong Kong bourse.

The Hong Kong-listed firm said it estimated a HK$288.4 million ($37.2 million) gain from the disposal and the proceeds would be earmarked for diversifying its brand portfolio.

$1 = 7.7630 Hong Kong dollars Reporting by Donny Kwok; Editing by Stephen Coates

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