Texhong International Group (02678.HK) has announced its plans to sell its knitted fabric factory in Vietnam for a staggering sum of approximately US$78.592 million. The sale is part of the company’s ongoing efforts to streamline its operations and optimize its business portfolio.
The decision to sell the factory was revealed in a recent statement by Texhong International Group. According to the announcement made on August 4, 2023, the company’s indirect wholly-owned subsidiary, along with Everview Industrial Co., Ltd. and Deyong Jia, entered into a sale and purchase agreement. The agreement detailed that the buyer has conditionally agreed to purchase the entire equity interest in the target company, Shizheng Vietnam Co., Ltd.
In addition to the acquisition of the equity interest, the buyer has also agreed to assume the loan. The final consideration for the sale is estimated to be around US$78.592 million, with adjustments being made as necessary.
Shizheng Vietnam Co., Ltd., the target company, primarily specializes in the manufacturing of knitted fabrics in Vietnam. This sale will mark a significant milestone for Texhong International Group as it continues to strategically realign its resources and focus on its core competencies.
The decision to sell the knitted fabric factory aligns with Texhong International Group’s broader strategy of optimizing its operations and divesting non-core assets. The company aims to streamline its business and improve its overall profitability by focusing on its key competencies and core markets.
Texhong International Group is known for its presence in the textile industry and has a strong track record of manufacturing and distributing a wide range of textile products. The sale of the knitted fabric factory in Vietnam represents a strategic move by the company to consolidate its operations and enhance its competitiveness in the market.
Overall, this sale signifies Texhong International Group’s commitment to adapt to changing market dynamics and optimize its business portfolio. The decision to divest non-core assets reflects the company’s determination to focus on its core competencies and drive long-term sustainable growth.