Acquisitive Chinese luxury apparel firm Shandong Ruyi Group (山東如意) is planning an initial public offering for The Lycra Co, maker of the elastic material used in yoga pants and skinny jeans.
Ruyi aims to list the business within three years, chief strategy officer Kelvin Ho (何卓賢) said in an interview on Friday last week in Hong Kong. Lycra Co owns some well-known brands and has strong cash flow, and a listing would provide a great incentive for staff, Ho said.
Consumer companies have completed US$48.5 billion of first-time share sales globally over the past 12 months, data compiled by Bloomberg show. Ruyi added about 3,000 employees through its acquisition of Lycra Co, which it completed on Jan. 31.
The acquisition brings brands including Coolmax fibers and Thermolite insulation as well as manufacturing facilities, research centers and sales offices around the globe. Ruyi paid more than US$2 billion for the business, Bloomberg News has reported.
Ruyi finally closed the acquisition of Lycra Co, which was owned by an arm of Koch Industries Inc, after regulatory delays hampered the transaction for months. It completed the purchase just hours before a final deadline ran out on Jan. 31, more than 15 months after the deal was announced, a person familiar with the matter said.
The deal took over six months longer than expected, in part because Chinese capital controls made it difficult to move funds offshore, according to people familiar with the matter. The regulatory approval process in China and the US also took longer than expected, the people said, asking not to be identified as the details are private.
A representative for Ruyi declined to comment on the reasons for the delay, adding that the regulatory process was normal. The seller, Koch Industries unit Invista, did not immediately respond to e-mailed queries outside regular US business hours.
The Chinese company, previously a little-known textile manufacturer, now owns several European luxury brands after purchases including UK trench coat maker Aquascutum and SMCP SA, the French fashion retailer whose labels include Sandro, Maje and Claudie Pierlot.
NOTABLE SHIFT: By 2030, 50% of all laptops would be assembled in Southeast Asia, while Taiwan would still mostly focus on research and development, a report said Global laptop and desktop computer supply chains are expected to shift significantly away from China in the next 10 years, a Market Intelligence & Consulting Institute (MIC, 產業情報研究所) report said. By 2030, only 40 percent of global laptop production would remain in China, said the report, which was released on Thursday. “The reshuffling of the global supply chain will be one of the most important trends in the next 10 years,” the institute said in the report. “In the long run, key component makers will follow laptop assemblers in moving out of China.” The Taipei-based institute predicted most key component makers
Merck Group Taiwan yesterday said that it plans to invest substantially on expanding its fab in Kaohsiung’s Lujhu District (路竹) to better serve its local customers, including Taiwan Semiconductor Manufacturing Co (TSMC, 台積電). The company said it plans to expand its production space by 50 percent in the next five years and its workforce by about 40 percent, Merck Group Taiwan managing director Dick Hsieh (謝志宏) told a media briefing in Taipei. Hsieh declined to disclose investment details, but said that the latest investment would exceed the total amount Merck has invested in Taiwan over the past few years. Those investments would be
Yageo Corp (國巨), the world’s third-largest supplier of multilayer ceramic capacitors, has formed a strategic alliance with Hon Hai Precision Industry Co (鴻海精密) to develop key electronic components for electric vehicles and digital healthcare, it said yesterday. The alliance is to help Yageo boost its revenue from high-end components for vehicles and industrial, medical and aerospace devices, as well as those used in 5G and Internet-of-Things devices, the company said. The companies signed the strategic alliance agreement at Yageo’s headquarters in New Taipei City’s Sindian District (新店). Their cooperation is to start this quarter, the companies said in a joint statement. “Through the cooperation
SUPPLY CONSTRAINTS: The transferred orders might not provide an immediate revenue boost given local chipmakers’ high utilization rates, a senior analyst said Shares of local contract chipmakers yesterday rose as much as the 10 percent daily limit, as investors bet on orders being transferred from Semiconductor Manufacturing International Corp (SMIC, 中芯國際) after the US imposed export restrictions on the Chinese chipmaker. United Microelectronics Corp (UMC, 聯電) shares soared 10 percent to close at NT$27.5 as 380 million shares changed hands on the Taiwan Stock Exchange. UMC is the world’s No. 3 foundry by revenue, followed by SMIC, according to data from market researcher TrendForce Corp (集邦科技). UMC has product and customer portfolios similar to those of SMIC, TrendForce said, adding that UMC offers 14-nanometer and