Shandong Ruyi Purchase Israel Corp Bagir Spanaction Again Postponed Until Next March.

In June 19th, Bagir, Israel's innovative garment maker, announced that the purchase of Bagir from Shandong Ruyi investment holding group of China (hereinafter referred to as "Shandong Ruyi") was postponed to March 31, 2020. After the news, Bagir shares fell 19.31% to 1.25 U.S. dollars per share.

Up to now, Bagir has received a total of $3 million 300 thousand in Shandong's non refundable repayment. Shandong Ruyi still needs to pay the remaining $13 million 200 thousand. In addition, in accordance with Bagir's purchase of 500 thousand meters of woollen fabrics and fabrics, Shandong Ruyi also postponed the credit payment date to March 31, 2020. Up to now, Bagir has purchased 300 thousand meters of cloth, with a total value of about 2 million 900 thousand dollars.

Bagir said: "in the past few days, the respective executives of the two sides held a series of talks in Beijing. Shandong has the sincerity to complete the spanaction, and they have promised to provide the necessary operational support before the deadline for the spanaction. "

Founded in 1961 and headquartered in Israel, Bagir is a global innovative garment design manufacturer and supplier. Its customers include H&M and Brooks Brothers (Booker Brothers).

By May, sales of Bagir from January to May this year were $27 million, an increase of US $5 million 200 thousand over last year. Bagir has a reserve order worth US $26 million 200 thousand, and in the next three months, Bagir can continue to undertake new orders as far as it can.

Eran Itzhak, chief executive of Bagir, said: "despite the grim situation in the apparel market, Bagir's sales performance in the first five months of this year has been good. We have sufficient reserve orders, and we have the ability to undertake new orders. However, for retailers and manufacturers, the challenges ahead remain the same.

At the beginning of this year, Shandong promised to provide professional production facilities for Bagir's production base in Ethiopia at a market price of US $1 million 300 thousand. In response, Bagir said that the two sides have reconfirmed that the Shandong Ruyi commitment equipment will be delivered by the end of September.

The Bagir production base in Ethiopia is currently producing 3000 pants per day. By the end of 2019, the output of trousers will be increased to 4000 per day.

In November 2017, Shandong announced that it would buy Bagir 54% shares at a price of 16 million 500 thousand US dollars. In December 31, 2018, due to the absence of the Chinese government's approval, Bagir announced that the spanaction was postponed to May 30, 2019. In June 1, 2019, Shandong wished again to postpone the spanaction to June 18, 2019.