Bagir Share Discussion Threads

[moneymunch] 21/9/2018 08:09

The Chinese textile manufacturer approached Bagir in June 2017 with conversations initially centred around the Ethiopian operations before widening to the whole business.

Shandong Ruyi is expected to make substantial cost savings from the deal. Itzthak said the numbers spoke for themselves: In China the cost make per suit is $18, which is not duty-free , when it comes to the US, theres an added 28% on top of costs. But the cost per suit in Ethiopia is between $3-$5, and its duty-free to the US and Europe.

[moneymunch] 21/9/2018 08:08

Not long to go before one of the World's largest textile apparel manufactures, a multi-billion dollar Chinese State backed company, takes a 54% controlling stake in an Aim listed company with a current market cap of ££8m.....now i can't think of many other similar opportunities, still under the radar to many, where at a stroke of a pen Shandong Ruyi could transform Bagir's fortunes by re-directing and transferring some of their multi-million dollar global supply contracts to Bagir's 100% owned Ethiopian manufacturing base, the most cost effective any where in the World......

In China the cost make per suit is $18, which is not duty-free , when it comes to the US, there's an added 28% on top of costs. But the cost per suit in Ethiopia is between $3-$5, and its duty-free to the US and Europe )

....can you imagine the market response if a multi-billion dollar global company was planning to take control of an Aim listed tiddler in the Software and Computer, or Oil and Gas or Financial sectors etc ????.....

Shandong Ruyi's initial $16.5m investment priced at 3.5p a share, is just the start in the rise of Bagir's fortunes , the real upside will follow as Shandong unveil their plans for the development and expansion of the Ethiopian factory and the implications this will have on transforming Bagir's future sales revenues and potential growth.....3.5p just for starters and many multiple of 3.5p more than possible. Gla Holders...exciting Times!!! ;-)

[moneymunch] 21/9/2018 08:04

Eran Itzhak, CEO of Bagir, said:



"Alongside our trading performance which reflects the investment we have been making in expanding our Ethiopian production capacity, we have made significant progress since the year end with the strategic partnership with Shandong Ruyi, a global leader in textiles, which, subject to shareholder approval, will result in Shandong Ruyi investing $16.5 million into Bagir to support of the growth of the business in particular the expansion of the Ethiopian manufacturing site. This investment together with being in partnership with Shandong Ruyi will undoubtedly be transformative for Bagir."

I can't wait for the Final Results in 6 months time under Ruyi's influence and direction.....KER-CHING!!! ;-)

ps Bagir's order book and profitability is going to rise exponentially with Ruyi at the helm as new business and supply contracts arrive and production is ramped up in their duty free Ethiopian factory, as well as Egypt and Vietnam..... it's going to be BIG!!!! ;-)

[honour among thieves] 21/9/2018 07:48

UK mug punters gonna get killed here. Israelis and Chinamen are laughing and I am laughing too. LOL

54% Controlling stake means very high probability of delisting agenda is extremely likely.

Now will it crash to 0.2p or 0.25p?

We just have to wait for the rns.








As the Chinese have a Majority shareholding

Can they delist it with the help of other bigger shareholders? For sure such resolutions will pass as they have block YES vote of 54%.


Voting for such resolution means they could regain the capital invested right?

What would be the point of taking majority ownership if that was not main reasons, surely anyone can work this out.

Don't be surprised wake up one morning and seeing a rns about an EGM for delisting. That would cut the share price price to 0.5p something immediately







MONEYMUNCH

[big brother8] 21/9/2018 07:47

MONEYMUNCH

[moneymunch] 21/9/2018 07:24

Not too bad at all. and now i cant' wait for the Final Results in 6 months time under Ruyi's influence and direction.....KER-CHING!!! ;-)

ps Bagir's order book and profitability is going to rise exponentially with Ruyi at the helm as new business and supply contracts arrive and production is ramped up in their duty free Ethiopian factory, as well as Egypt and Vietnam..... it's going to be BIG!!!! ;-)

[moneymunch] 21/9/2018 07:06

Friday 21 September, 2018
Bagir Group Ltd
Half-year Report
RNS Number : 4792B
Bagir Group Ltd
21 September 2018


21 September 2018



Bagir Group Ltd.

("Bagir", the "Group" or the "Company")



Interim results

for the six months ended 30 June 2018



Bagir (AIM: BAGR), a designer, creator and provider of innovative tailoring is pleased to announce its results for the six months ended 30 June 2018.



H1 Highlights

· Revenues of $24.8m for the first half of 2018, in line with management expectations (H1 2017 $28.1m).

· Higher production costs in the first half of 2018, affected gross margin and profitability, attributed to the following:

o recruitment and training of new production line teams in Ethiopia as a result of the increase in production capacity following the investment in new machinery in 2017;

o training of the new teams has led to higher than typical anticipated raw material usage; and

o subcontractor's costs in Vietnam and Egypt have been higher during the transition period where production has been moved to more competitive costing programs.

· Adjusted EBITDA* loss of $(1.7) and gross margin of 6.7% in the first half of 2018 resulting from the above higher production costs, compared with adjusted EBITDA* of $1.1m and gross margin of 16.4% in H1 2017.

· Cash and cash equivalents at 30 June 2018 of $2.8m, which includes $1.65m received from Shandong Ruyi in the period as announced on 9 January 2018 ($2.6m and $7.1m at 31 December 2017 and 30 June 2017, respectively).

· Identified and commenced a rationalization of operations, focusing on fewer production sites and a reduction in the operational cost base, expecting these measures to enable total cost savings (including the savings announced on 20 November 2017) by approximately $5m on an annualized basis.

· The Company has posted a circular to its shareholders containing further details of the proposed $16.5 million investment (the "Proposed Investment") in the Company by Shandong Ruyi Fashion Investment Holding Co., Ltd. ("Shandong Ruyi") and notice to convene an Extraordinary General Meeting on 9 October at which the resolutions required to [enact] the Proposed Investment will be tabled.



* 'EBITDA' is a non-IFRS measure that the Company uses to measure its performance. It is defined as Earnings Before Interest, Taxation, Depreciation and Amortisation and non-cash share based compensation and excluding company share is lossesgains of affiliated companies. The Adjusted EBITDA figure excludes $0.2M other expenses in H1 2018 attributed to restructuring activities, and $1m one-off capital gain attributable to the acquisition in Ethiopia, net of other expenses.



Eran Itzhak, CEO of Bagir, said:



"Alongside our trading performance which reflects the investment we have been making in expanding our Ethiopian production capacity, we have made significant progress since the year end with the strategic partnership with Shandong Ruyi, a global leader in textiles, which, subject to shareholder approval, will result in Shandong Ruyi investing $16.5 million into Bagir to support of the growth of the business in particular the expansion of the Ethiopian manufacturing site. This investment together with being in partnership with Shandong Ruyi will undoubtedly be transformative for Bagir."

[moneymunch] 20/9/2018 10:10

China's largest and one of the World's leading textile apparel manufactures, the multi-billion dollar Shandong Ruyi is about to take a 54% controlling stake in the Aim tiddler Bagir ......this is totally transformational for Bagir and its shareholders and is bigger than many realise imho....On and most definitely UP!!!! ;-)))

[moneymunch] 20/9/2018 09:56

A no-brainer, don't delay....Tick Tock Boom!!! :-)


Bagir (AIM: BAGR), a designer, creator and provider of innovative tailoring is pleased to announce that further to its announcement on 23 November 2017, that it had agreed terms with Shandong Ruyi Technology Group for a proposed investment and strategic partnership under which Shandong Ruyi will invest $16.5 million into the Company in return for 359,560,310 New Ordinary Shares representing 53.7 per cent of the Company's Enlarged Share Capital. The Company has today posted a circular to its shareholders containing further details of the Proposed Investment and notice to convene an Extraordinary General Meeting at which the resolutions required to enact the Proposals will be tabled.

The Proposed Investment values each New Ordinary Share at approximately 3.5 pence per Ordinary Share and represents a premium of 155 per cent. to the mid-price at 12:10 on 20 November 2017, being the point at which trading in the Ordinary Shares was suspended ahead of the announcement of the Proposed Investment on 23 November 2017.

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.

Accordingly, the Directors unanimously recommend that you vote in favour of the Resolutions to be proposed at the Extraordinary General Meeting as the Directors, who have an interest in Ordinary Shares, have irrevocably undertaken to do in respect of their own and connected persons beneficial shareholding.

The Extraordinary General Meeting is to be held at the offices of N+1 Singers, One Bartholomew Lane, London EC2N 2AX at 10:00 a.m. on 9 October 2018.

The circular will shortly be available to view at the Group's website

Capitalised terms used but not defined in this announcement have the meanings set out in the circular and in the appendix to this announcement. Further details of the recommended Proposals, extracted from the Circular, are set out below.

Eran Itzhak, Chief Executive Officer of Bagir said:

"We are delighted to be putting this proposal to our shareholders as we believe it to be transformative, creating a platform from which Bagir has the potential to become a significant player in our market of apparel manufacturing."

[moneymunch] 20/9/2018 09:51

3p calling....On and Up!!! :-)

[moneymunch] 20/9/2018 09:48

Bye bye sub 2.6p....Gla :-)

[moneymunch] 19/9/2018 16:06

The last 4 Interim results arrived by Rns 13th, 15th, 25th and 11th September........anytime now then.......and a decent bounce up if they make good reading. Gla Holders....Hold on tight regardless for the inevitable re-rate on share holder approval for Ruyi's 54% controlling stake at 3.5p a share and receipt of $16.5m cash in the bank....Ker-Ching!!!.... ;-)

ps i reckon sub 2.5p could now be history from now on in with any luck, and those wanting in , better get a move on. ;-)

[moneymunch] 18/9/2018 21:07

bigbrother8's his Mummy....ha ha ha... :-)))

[big brother8] 18/9/2018 20:50

MONEYMUNCH

[moneymunch] 18/9/2018 17:40

It's going to be BIG!!! ;-)


Ethiopia: Bolstering Chinese Investment in Ethiopia's Textile Sector
Tagged:

18/9/18

press release

Major Chinese textile companies are stepping up sourcing and investment plans in Ethiopia following a visit to the African country by a delegation of industry representatives organized by the International Trade Centre.

During their 26-28 August visit to Addis Ababa, eleven delegates from the China Chamber of Commerce for Textiles (CCCT) met with heads of local textile companies and leaders of Ethiopian Textile and Garment Manufacturers Association as well as with high-level government officials. They struck sourcing agreements and explored investment partnerships with Ethiopia-based partners.

The visit was part of ITC's Partnership for Investment and Growth in Africa (PIGA) project, and was one in a sequence of events aimed at boosting private investment from China in African economies.

The CCCT has a membership comprising over 12,000 textile companies in China. Its recent delegation to Ethiopia included the heads of four large-scale firms, who were excited about the prospects for more Chinese investment in Ethiopia, particularly as manufacturing costs rise in China.

[moneymunch] 18/9/2018 15:39

If the Half Yearly Report is OK, then this could go some in run up to EGM. Gla ;-)

[moneymunch] 18/9/2018 15:39

On and Up!!! :-)

[moneymunch] 18/9/2018 15:35

Dare i say it, but i think we've seen the bottom dependent on the Half Yearly Report. i reckon most were expecting it last week and so a few sold out yesterday , perhaps thinking the perceived delay indicates that it won't make good reading, Bagir were expecting another challenging period but with the cost saving and cost cutting measures they have implemented, hopefully means that the report will be reasonable and confirms continued profitably....any way, regardless..... EGM day only 3 weeks away to $16.5m cash in the bank and Ruyi's 54% controlling stake, and Trumps latest raft of Tariffs has got be be highly significant to Ruyi and Bagir's Ethiopian base. Gla Holder...Tick Tock Boom!!! ;-)