China's Shanghai Challenge Textile Company has acquired a 24.36% stake in Masood Textile Mills, one of the few vertically integrated textile and apparel makers in Pakistan.

In a filing on the Karachi Stock Exchange yesterday (16 December), Masood said the company had bought 14.6m shares; around one-fourth of the total shareholding of the Faisalabad-based firm. Financial details of the deal were not disclosed.

In a separate filing, Masood said Shahid Iqbal had resigned as director, on account of "other preoccupations". As a result, Miss Chen Yan of Shanghai Challenge Textile Co will replace him for the remaining period.

The deal comes two months after plans by China's Shandong Ruyi Technology Group to take a majority stake in Masood Textile Mills were called off.

Masood Textile Mills has in-house yarn, fabric, processing, printing and knitted apparel manufacturing facilities. The company earned PKR906m (US$8.6m) profit after tax in the fiscal year 2012-13 (July-June).