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Monday December 17th 2007
Kingfisher to sell B&Q Taiwan joint venture
Archived article dated Monday December 17th 2007
Kingfisher has agreed to sell its 50% joint venture stake in B&Q Taiwan to its joint venture partner, Test Rite International, for a total
cash consideration of £51.6 million.
The sale is expected to be completed by 31 December 2007 with the proceeds used to reduce debt. The transaction is subject to the approval of the Taiwanese Investment Commission. Subject to finalising the net asset value on completion as at the end of December 2007, the profit arising on disposal is expected to be around £25 million.
Commenting on the sale, Peter Jackson, Kingfisher's Chairman, said 'Our Taiwanese joint venture has been a success, providing good investment returns for shareholders while also acting as a useful springboard for entering the large and fast-growing mainland Chinese market. However, after 11 years of expansion B&Q Taiwan now offers only limited opportunities for future market share growth for Kingfisher. This sale is consistent with our focus on capital allocation and investment returns.'
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