UAE-based Velora Global Ventures F.Z.C. is set to acquire an 18.31% stake in Masood Textile Mills Limited from two Chinese shareholders under separate share purchase agreements, according to a filing with the Pakistan Stock Exchange (PSX).

The proposed transaction involves Shanghai Challenge Textile Co., Ltd. selling a 7% stake, while Zhejiang Xinao Industry Company Limited will sell its entire 11.31% holding in the company.

The acquisition will be completed through phased quarterly transactions over nearly three years, subject to required regulatory approvals.

Shanghai Challenge Textile currently holds 17,396,833 ordinary shares, representing around 25.77% of Masood Textile’s paid-up capital. The company will transfer its 7% stake through 11 equal quarterly installments.

Meanwhile, Zhejiang Xinao Industry, which owns 7,636,550 shares in Masood Textile, will divest its complete holding through 10 equal quarterly installments.

Velora Global Ventures said the transaction is subject to approval from the Competition Commission of Pakistan and other applicable regulatory requirements. The company will also submit a pre-merger application to the competition regulator before completing the acquisition.

The Chinese shareholders clarified that their disclosures were made to inform Masood Textile about the proposed share transfers and did not require approval or consent from the company.

Shanghai Challenge Textile, established in 2001, produces functional fabrics, sportswear materials, garments and medical protective products for international brands. Zhejiang Xinao Industry, part of China’s Xinao Group, specializes in worsted wool, cashmere and blended yarn production.

Velora Global Ventures is registered in the UAE’s Ajman Free Zone, although limited public information is available about its ownership and business operations.

Masood Textile Mills, listed on the Pakistan Stock Exchange since 1988, operates in the production of yarn, knitted and dyed fabrics, and garments for local and international markets.