Fishy deals2 Aug 2018 19:28
Not sure what happened to Laxeymouth but he/she did a great summary in June 2018:
"First Aim has to learn the difference between a fishy deal and the real deal..
Fishy deals do not keep you informed like BAGR have all through this .
Fishy deals barely ever name a bidder or call out the numbers let alone give you the amount of info we have here..
Fishy deals say "listening to offers" "we have a letter of interest" "strategic review" and will then get two placings away while you wait for truth for 18mths + to almost nailed on heartbreak.
Fishy deals do not get $1.5m+ up front ..ever ever.
Then Aim needs to look (if shown) at the Partner making the offer in question making sure of course that it's a Major and not some dodgy subsidary of the CEOs mate/Cousins/Brothers own firm..
So lets look at Ruyi..
Major? Hell yes.
History of M&A? Yep..
Money? Yes
A Global top 20 purveyor of luxury goods..
In fact all of the above can be answered in one sentence .. Ruyi are Chinas biggest and are still going for it in a 15 year aquisition spree where Bally, SCMP, Renown,Aquascutem have been bought in cash and have recently tabled a bid for Fat Phils Arcadia..
Simply not your usual mythical Aim suitor..
We should then look at WHY..
BAGR are a break even company .. no mean feat on Aim in the height of retail disruption but thats not why..
The reason as all here invested know is China production costs, because of higher living standards, are no longer competitive and we have our superbly placed plant in Ethiopia with cheap labour,tax breaks with a bit of tech thrown in..
But plants take a long time to build from scratch..
The money given to us by Ruyi is being pumped into that plant as we speak with a further £10m (gbp) to come ...
All for expanding that plant..
Expanding it beyond the scope of BAGRs wildest dreams ..
When finished ... has anyone here have any idea of the sheer weight of product Ruyi are gonna pump through it...?
Bagr could end up knee deep in all those brands and as if we wouldn't be busy enough imagine if Ruyi do end up with Topshop?
Also.. Ruyi , at 54%, have our listing and they don't have to 'change the nature of business' so heres me talking about what they are gonna pump through our warehouse but really thats nothing compared to what they could pump through a listing requiring a name change and nothing else.. (rampy: granted)
Can't give you a timespan but based on FACTS this a no brainer.."
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