Shandong Ruyi Group Intends To Purchase Japanese Garment Giant In May 28Th.

Recently, an overseas acquisition report pushed Shandong Ruyi technology group to the top of the storm.

It is reported that Ruyi group will spend about 300 million yuan (about 4 billion yen) to acquire about 40% of Renown, the former largest garment operator in Japan, and become the largest shareholder of the latter.

Once the acquisition is successful, this will be the largest investment in the history of Chinese enterprises for Japanese listed companies.

According to Japanese economic news reports, Renown will sell shares to Ruyi group with about 4 billion yen, which will become its largest shareholder.

The report also points out that the paction will enable the Ruyi group to acquire famous brands such as D's Urban and HenryCotton 's, which are operated by Renown, and Renown will also accelerate its development in China through the sales network of Ruyi group in China.

It is understood that Renown, once the largest garment operator in Japan, operates more than 30 famous clothing brands in more than 2000 Japanese stores.

But its operations in recent years have been difficult.

In 2009, the company lost a net loss of 10 billion 900 million yen, and its operating income decreased by 17% compared to the same period last year.

And expects its revenue to be cut by half in fiscal year February 2011, with a net loss of 5 consecutive years.

Therefore, it is considered to be a good opportunity for the Ruyi group to take over the takeover bid.

Recently, the media learned from Ruyi group's relevant people that the purchaser, Ruyi group, is a shareholder of Ruyi large shareholder of Shandong Ruyi wool textile group. It is necessary to complete the acquisition and the Renown shareholders meeting and the national development and Reform Commission.

Renown24's announcement shows that the total amount of the paction is 3 billion 999 million yen. After the completion of the paction, Ruyi group will become a major shareholder of Renown because of its 41.18% stake.

Since Ruyi group is China's largest textile enterprise group and has several premium brands, Renown will also expand its brand channel in China with Ruyi group.