A Taiwan-based garment manufacturer Quang Viet Enterprise Co Ltd has evinced keen interest in Vietnam’s swimwear makers King Hamm Industrial Co Ltd for purchasing stock worth USD 11.4 million by participating in a rights issue.
The purchase when it materializes will give Quang a 42 percent stake in Vietnam’s big time swimming and functional wear supplier.
The Vietnamese firm, King Hamm, manufactures and supplies high-end swimwear besides functional wear for the export basket that is aimed at big time global brands. The brands include North Face Inc and Under Armour Inc.
Quang Viet expressed its intention to buy 13.65 million new shares that were issued by King Hamm to the Taiwan Stock Exchange. The shares were issued at the rate of New Taiwan dollar 24.5 per piece.
Quang Viet plans to avail this acquisition to catch up with what’s trending in the textile industry and also to chalk out its long-term growth requirements. In addition, Quang has an eye on expanding its production base in Vietnam.
At present the Taiwanese firm is anchored to operate the second-largest supply chain for down jackets globally. Quang’s down jackets are purchased by high-end brands like Nike, Adidas and North Face among others.
Only a month earlier, Quang had declared its intention to expand its base in the Middle East. For this, it had expressed interest in acquisition of 60 percent stake in Atlanta Garment Manufacturing Company, based in Jordan. The purchase was slated to take place for a price of USD 2.7 million.
Close on heels to striking these two deals, Quang anticipates growth of sales by 15 percent Y-o-Y next season. The total gain to accrue from both these acquisitions in the next calendar year is expected to range between USD 52 million to USD 57 million.