Texhong Textile Group, one of world’s largest core spun yarn suppliers, formed a new joint venture company named Texhong Winnitex Holdings Ltd to acquire the entire equity interest in Winnitex Holdings Ltd, Winnitex Ltd and Zhejiang Qing Mao Weaving, Dyeing, Printing Co. Ltd. (Collectively ‘the Winnitex Group’) at a total value of about HK$1350 mn ($172.78 mn). Texhong Winnitex has been set-up for the purpose of the reorganisation. It will be held 80 per cent by the Texhong Textile Group and 20 per cent by Wai Chi Kwok, Jacob and Wai Chi Wah, Nelson, said by the company. After deducting the cash received from the acquisition of 20 per cent equity interest in joint venture shares, the net cash consideration to be paid by Texhong Textile will be less than HK$900 mn ($115.19 mn). The joint venture’s combined annual income will exceed RMB350 mn ($50.67 mn) after production expansion in Vietnam and Nicaragua.