Chinese Shareholders Agree to Sell 18.31% Stake in Masood Textile
Masood Textile Mills Limited has informed the Pakistan Stock Exchange (PSX) that two of its Chinese shareholders have entered into agreements to sell a combined 18.31% stake to UAE-based Velora Global Ventures – F.Z.C. over the next three years.
The transactions will be carried out in phases and remain subject to regulatory approvals, including clearance from the Competition Commission of Pakistan (CCP).
Phased Divestment Details
Shanghai Challenge Textile Co., Ltd., which currently holds 17,396,833 shares representing approximately 25.77% of Masood Textile Mills, has agreed to sell a 7% stake in the company.
According to the agreement, the transfer will be completed through 11 equal quarterly instalments, subject to contractual terms and regulatory compliance.
Meanwhile, Zhejiang Xinao Industry Company Ltd., which owns 7,636,550 shares or around 11.31% of the company’s paid-up capital, has agreed to dispose of its entire shareholding.
The sale will take place in 10 equal quarterly instalments over the agreed period.
Velora to Complete Acquisition in Phases
Velora Global Ventures – F.Z.C. confirmed that it has signed separate share purchase agreements with both Chinese shareholders for the acquisition of the combined 18.31% stake.
The UAE-based company stated that the acquisition will be completed gradually over approximately three years.
The transaction remains subject to approval from the Competition Commission of Pakistan, along with other applicable legal and regulatory requirements.
Regulatory Approvals Required
Velora said it will submit a pre-merger application to the Competition Commission of Pakistan and will share the official acknowledgment once it is issued.
Masood Textile Mills stated that the disclosures were made in accordance with Section 96 of the Securities Act, 2015, and Clause 5.6.1(a) of the Pakistan Stock Exchange Regulations.
The company received formal notifications from both selling shareholders dated July 31, 2026, while the buyer’s notification was received on August 3, 2026.
Shareholding Structure to Change
According to the disclosures, no further approval or action is required from Masood Textile Mills for the transactions to proceed.
The phased divestment represents a significant change in the shareholding structure of the Faisalabad-based textile manufacturer, which has long counted Chinese investors among its major shareholders.
Market participants are expected to closely monitor the Competition Commission’s review process and the scheduled quarterly share transfers over the coming years.