To seek listing on CSE:
Pacific Textiles joins Brandix
The Board of Directors of Textured Jersey Lanka (Private) Limited
(Textured Jersey), a joint venture between Pacific Textiles Holdings
Limited of Hong Kong (Pacific Textiles) and Sri Lanka’s Brandix Lanka
Limited (Brandix Lanka), has decided to seek a listing on the Main Board
of the Colombo Stock Exchange (CSE).
Textured Jersey is currently jointly owned by Pacific Textiles, which
has a 60 percent stake in the company, and the balance 40 percent being
held by Brandix Lanka. Post-listing, subject to receiving CSE approval,
it is expected that approximately 30 percent of Textured Jersey will be
held with the public, with part of the dilution taking place via a
pre-IPO placement and the balance through an IPO of new shares.
Brandix Lanka Chief Executive Officer Ashroff Omar (Left)
and Pacific Textiles Chief Executive Officer Bil Lam.
(Right) |
The total transaction value is estimated to be approximately Rs 2.9
billion.
Textured Jersey is one of Sri Lanka’s most sophisticated production
facilities, manufacturing knitted fabrics for the intimate apparel and
sportswear industries. Specializing in the manufacture of high quality,
weft-knitted and dyed stretch fabrics, Textured Jersey is a major
supplier to apparel manufacturers throughout Asia and end-chain
retailers.
Amongst its largest clients are Victoria’s Secret, Marks and Spencer
and Intimissimi. Infrastructure at the 650,000 sq. ft. facility in
Avissawella enables a capacity to knit, dye and finish up to 2.5 million
meters of fabric a month.
Despite facing challenges in the form of rising cotton prices, high
energy costs and loss of tariff concessions, Textured Jersey has
delivered strong financial results during the past five years.
Pacific Textiles Chief Executive Officer and a Textured Jersey,
Director Bill Lam also said that the listing would enable Textured
Jersey to take advantage of potential growth opportunities in both Sri
Lanka and the South Asian region.
‘High global cotton prices are an industry-wide headwind at present,
but we believe this will facilitate industry consolidation in the longer
term, and stronger players will continue to gain market share’ said Bill
Lam and Brandix Lanka Chief Executive Officer Textured Jersey, Director
Ashroff Omar said that the listing was sought to provide Textured Jersey
with greater operational flexibility and to provide a separate
independent platform to raise funds from the capital markets to support
its future growth aspirations.
‘Knit products constitute the fastest growing segment of the Sri
Lankan apparel export market, which is growing strongly even after the
end of the GSP+ concessions in August 2010, and Textured Jersey is the
country’s pre-eminent producer of value-added knitted fabric’ said Omar.
The Hong Kong listed Pacific Textiles is a leading manufacturer of
customized knitted fabric in the global textile industry, with a focus
on complex, value-added fabrics. It has one of the largest textile
manufacturing facilities in China, and provides integrated services of
knitting, dyeing, printing and finishing, with an annual production
capacity of approximately 87 million kg.
Pacific Textiles reported a 21 percent YoY increase in revenue for
six months ended September 30, 2010 to HK$ 3.7 billion (US $ 474
million), with net profit attributable to shareholders rising by 17
percent YoY during the same period to HK $ 453 million (US $ 58
million).
Brandix has been accredited as Sri Lanka’s largest apparel exporter.
Being the pioneer of the concept of ‘total solutions’ in Sri Lanka’s
apparel sector, Brandix is a preferred solutions provider to some of the
world’s leading apparel brands, including Victoria’s Secret, PINK, Gap,
Banana Republic, Marks and Spencer, Lands’ End, Tommy Hilfiger, Hanes,
Express, H and M, Intimissimi and Tesco.
The Group specializes in casual bottoms, underwear, lounge and
sleepwear, bras, textiles, knitted and woven fabrics, sewing and
embroidery thread, accessories and hangers, and also offers wet
processing and finishing and fabric printing.
The Brandix Group is supported by 32 manufacturing locations
island-wide, in addition to other facilities in the South Asian region,
and strategically located international sourcing offices, and directly
employs over 30,000 associates in Sri Lanka.
Textured Jersey is being advised by investment bankers CT Capital (Pvt)
Ltd and Acuity Partners (Private) Limited, who will also act as managers
to the capital raising and listing exercise. |