Lingerie maker Top Form International Ltd is to buy Ace Style Intimate Apparel Ltd, one of Hong Kong's largest intimate apparel firms, and three associate companies for a total of HKD303m (US$38.8m).

Ace Style, along with the three other firms - Elkhorn Enterprises Ltd, Tavistock Springs (HK) Ltd and Carina Apparel Inc - all manufacture ladies' intimate apparel and accessories such as bra cup wires and moulds and have production facilities in China and the Philippines.

Under the terms of the deal, Top Form will pay HKD285m in cash and issue 26.88m new shares at HKD0.682 each, a premium of 21.8% on the stock's last closing price.

The four companies posted a combined net loss of HKD113m for the year to 31 March and had total debts of HKD525m, Top Form said in a statement today (30 July).

It added that the acquisitions will substantially boost its operational capacities and strengthen its market presence and product offerings.