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Hong Kong : Dragon- Tex to but textile dyer River Richie stock

2004-7-28
Textile company Dragon-Tex (Group) Ltd and its wholly owned Hong Kong subsidiary have struck a deal to buy textile-dying firm River Richie Ltd for $1.9 million with shares.

South Champ Trading Ltd will purchase 100 percent shares of River Richie and issue 1.2 million common shares of Dragon-Tex to the shareholders of River Richie.

River Richie, based in Hong Kong, is a textile dying business with a plant in Guangdong, China. The company facility has two production lines, both having production capacity of 1.2 million square metres per month.

River Richie had gross sales of about $12.9 million in its recent fiscal year, with net income after tax of about $583,000.

The acquisition will be the first for Dragon-Tex since becoming a public company in January.

The company does its business through South Champ, which manufactures and sells woven fabrics, and trades in cotton yarn and children''''s apparel.
 
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