Chinese Shareholders Sign Separate Agreements With Velora
Two Chinese shareholders of Masood Textile Mills Limited have agreed to sell a combined 18.31 percent stake to UAE-based Velora Global Ventures F.Z.C.
Masood Textile disclosed the proposed transaction to the Pakistan Stock Exchange on August 4, 2026.
The acquisition will take place through separate share purchase agreements. Velora signed one agreement with Shanghai Challenge Textile Company Limited. It signed another with Zhejiang Xinao Industry Company Limited.
Shanghai Challenge Textile will sell a 7 percent stake in Masood Textile. Zhejiang Xinao Industry will sell its entire 11.31 percent holding.
Together, the two transactions will give Velora an 18.31 percent shareholding in the Pakistani textile manufacturer, subject to regulatory approval.
The filing did not disclose the total purchase price. It also did not provide detailed information about Velora’s ownership structure.
Velora is registered in the United Arab Emirates. Its official correspondence lists an address in the Ajman Free Zone.
Share Transfers to Continue for Nearly Three Years
The acquisition will not be completed through a single transfer.
Instead, the shares will be purchased through phased quarterly transactions over approximately three years.
Shanghai Challenge Textile currently owns 17,396,833 ordinary shares in Masood Textile. This represents approximately 25.77 percent of the company’s issued and paid-up capital.
Under its agreement with Velora, the Chinese textile company will transfer a 7 percent stake through 11 equal quarterly instalments.
After completing the planned sale, Shanghai Challenge Textile will continue to hold a significant stake in Masood Textile.
The company said the transfer remains subject to agreed contractual conditions and all applicable legal requirements in Pakistan.
Zhejiang Xinao Industry currently owns 7,636,550 ordinary shares in Masood Textile.
Its holding represents approximately 11.31 percent of the company’s issued capital.
Unlike Shanghai Challenge Textile, Zhejiang Xinao plans to leave the investment completely.
It will transfer its entire shareholding to Velora through 10 equal quarterly instalments.
Zhejiang Xinao said its notification was submitted only to inform Masood Textile about the planned disposal. It clarified that the transaction does not require approval or consent from Masood Textile itself.
Shanghai Challenge Textile issued a similar clarification. It said its notice should not be treated as a request for approval from the company.
Competition Commission Approval Still Required
Completion of the acquisition remains subject to clearance from the Competition Commission of Pakistan.
Velora said it plans to submit a pre-merger application to the competition regulator.
The commission may request additional documents or explanations from Masood Textile while reviewing the proposed deal.
Other legal and regulatory requirements must also be completed before the acquisition can move forward.
Velora said it would share confirmation of the competition regulator’s receipt of the application once available.
The gradual structure means Velora’s ownership will increase over several quarters rather than immediately reaching 18.31 percent.
The filing did not indicate whether Velora would seek management representation, a board position or operational involvement after completing the purchase.
It also did not explain why the two Chinese investors decided to reduce or exit their holdings.
Deal Brings New UAE Investment Into Pakistani Textile Sector
Shanghai Challenge Textile was established in 2001 and is based in Shanghai.
The company manufactures functional fabrics, sportswear materials, garments and medical protection products.
Zhejiang Xinao Industry operates within China’s textile sector. It specialises in worsted wool, cashmere and blended yarn products.
Velora Global Ventures is registered in the UAE. However, limited public information is available about its wider investment portfolio and commercial operations.
Masood Textile Mills was incorporated in 1984 and has been listed on the Pakistan Stock Exchange since July 1988.
The Faisalabad-based company manufactures cotton and synthetic fibre yarn. It also produces knitted fabrics, dyed materials and garments.
The company has 67.5 million issued shares. Based on that total, Velora’s proposed acquisition represents approximately 12.36 million shares.
The deal could introduce another UAE-based investor into Pakistan’s major export-oriented textile industry.
However, the transaction will remain incomplete until the required regulatory clearances and contractual conditions are satisfied.
