HONG KONG (Reuters) - Menswear group Trinity Ltd (0891.HK) said Shandong-based textile maker Shandong Ruyi International Fashion Industry Investment Holding Co Ltd has agreed to buy shares representing 51.38 pct of its enlarged share capital for HK$2.22 billion ($284.62 million), raising funds for future acquisitions and to repay debt.
The retailer and wholesaler of menswear brands including Kent Curwen, Gieves Hawkes, and Cerruti 1881, said late on Thursday Ruyi would buy 1.85 billion new shares at HK$1.20 apiece, or a 60 percent premium over the stock’s previous closing price.
The announcement sent Trinity shares to their highest in 20 months at HK$0.99 on Friday morning before trimming gains to HK$0.87, still up 16 percent. That compared with a 0.01 percent gain the benchmark index .HSI.
Ruyi, which operates 13 industrial parks in China and over 3,000 points of sale in the Asia-Pacific region, will continue Trinity’s existing business and does not intend to dispose of any assets, Trinity said in a filing to the Hong Kong bourse.
Fung Retailing Ltd, which currently owns 40.95 pct of Trinity, will remain a substantial shareholder on completion of the deal holding 19.79 percent.
Ruyi has a distribution and point of sales network that services a global customer base. It has over 20 subsidiaries including listed firms Shandong Ruyi Woolen Garment Group Co Ltd 002193.SZ, SMCP SAS (SMCP.PA) and Renown Inc (3606.T).
Reporting by Donny KwokEditing by Christopher Cushing