Chinese textile major Shandong Ruyi to take control of Victor Fung’s struggling menswear retailer Trinity
Victor Fung and his family’s holding in menswear retailer will fall below 20pc
Shares of Hong Kong tycoon Victor Fung Kwok-king ’s menswear retail unit Trinity surged as much as 32 per cent after Shandong Ruyi Group, one of China’s largest textile firms, agreed to take control of the firm struggling to cope with fast shifting consumer behaviour.
Shandong Ruyi, 51 per cent owned by chairman Qiu Yafu, has agreed to buy 1.85 billion new Trinity shares at HK$1.2 each, totalling HK$2.22 billion.
The deal, when completed, will give Shandong Ruyi 51 per cent control over Trinity, while Fung and his family members will see their combined stake diluted from 40.95 per cent to 19.79 per cent.
“Our investment in Trinity will mark a significant milestone in our continued efforts to expand our business from being the leading upstream textile manufacturer in China to a long-term global player in the downstream global menswear market,” Qiu said in a statement late on Thursday.
“It will also mark a major step in further internationalising Ruyi Group’s business and brand portfolio.”
