GLG Corp Ltd has signed a definitive agreement under which its Singapore subsidiary, Ghim Li Global Pte Ltd will sell its Vietnam subsidiary, G&G Fashion (Vietnam) Co. Ltd to Dragon Crowd Garment Inc. Dragon Crowd will acquire all outstanding shares of Vietnam using a combination of $1.32 mn in cash and loan facilities to settle liabilities of Vietnam.
Upon completion of the transaction, G&G Fashion (Vietnam) will be owned by Dragon Crowd Garment Inc, a significant China manufacturer of young men’s and women’s lifestyle apparel. However, G&G Fashion (Vietnam) will remain as a supplier to GLG Corp under an outsourcing agreement.
“Currently we have planned customer orders for G&G Fashion, up until October 2019. Despite this change in ownership, the management and factory operations team will remain the same and GLG Corp will continue to partner with the Dragon Coward and Vietnam through outsourcing agreement as part of our global network of factories,” said Estina Ang, Founder and CEO of GLG Corp.
There will be no profit to the GLG Corp arising from the sale of G&G Fashion and the financial impact of the transaction to GLG’s Balance Sheet is immaterial or insignificant. G&G Fashion (Vietnam), incorporated in 2016, operates a garment manufacturing factory on four-hectares of land within the Binh Son Industrial Park, Ho Chi Minh City. The factory became operational in the fiscal year ending June 30, 2018 and has a current capacity of 30 production lines capable of manufacturing up to 1 mn units per month. Dragon Crowd was established in 1998 by Edward Zhou with offices in Ningbo, Hong Kong, New York and Costa Mesa in California.