Multibagir3 Sep 2018 17:28
The Board considers the Proposals and the passing of the Resolutions to be in the best interests of the Company, its Shareholders and its Depositary Interest Holders as a whole for the reasons set out below:
The use of the investment by Shandong Ruyi, to directly target expediting the development and expansion of the manufacturing facility in Ethiopia, will significantly accelerate the timetable for the operational potential in Ethiopia to be realised enabling the facility to attract and compete for major apparel manufacturing contracts from large international retailers which generate an acceptable level of return to Bagir.
Shandong Ruyi, as a result of its significant international textile and retail investments, is well positioned to provide the Group with significant new commercial opportunities.
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.
The strategic partnership with Shandong Ruyi will increase the Company's own profile and reputation.