HK's YGM sells Aquascutum business for $117 mln, shares jump

YGM Trading

02/03/2017 05:38

HONG KONG, March 2 (Reuters) - Garment manufacturing and 
trademark owner YGM Trading Ltd  0375.HK  said on Thursday it 
would sell its high-end Aquascutum apparel business to a Chinese 
textile group Jining Ruyi Investment Co Ltd  002193.SZ  for $117 
million, raising capital to fund new brand acquisitions.  
    Shares of YGM, which were suspended on Wednesday morning, 
rose 13.7 percent in resumed trade on Thursday afternoon. The 
stock jumped to HK$8.30, the highest since Oct. 28, 2016. 
    YGM has reached agreement to sell manufacturing, retailing 
and intellectual property rights of the "Aquascutum" brand as 
the business may continue to put pressure on its profitability, 
it said in a filing to the Hong Kong bourse. 
    The Hong Kong-listed firm said it estimated a HK$288.4 
million ($37.2 million) gain from the disposal and the proceeds 
would be earmarked for diversifying its brand portfolio. 
          
($1 = 7.7630 Hong Kong dollars) 
 
 (Reporting by Donny Kwok; Editing by Stephen Coates) 
 ((donny.kwok@thomsonreuters.com; +852 2843 6470; Reuters 
Messaging: donny.kwok.reuters.com@reuters.net)) 
 
Keywords: YGM AQUASCUTUM/