17th Dec 2007 08:00
Kingfisher PLC17 December 2007 Monday 17 December 2007 Kingfisher announces agreement to sell B&Q Taiwan joint venture Kingfisher plc today announces an agreement to sell its 50% joint venture stakein B&Q Taiwan to its joint venture partner, Test Rite International, for a totalcash consideration of US$106.5 million (£51.6 million). The sale is expected tobe completed by 31 December 2007 with the proceeds used to reduce debt. Thetransaction is subject to the approval of the Taiwanese Investment Commission. Taiwan was Kingfisher's first entry into Asia in 1996 with a highly adapted B&Qformat. Supported by its joint venture partner, B&Q quickly expanded acrossTaiwan and today operates 21 stores and employs around 1,800 people. In the yearto 3 February 2007 Kingfisher consolidated a pre-tax profit of £5 million andnet assets of £20 million from its 50% stake in the business. Subject tofinalising the net asset value on completion as at the end of December 2007, theprofit arising on disposal is expected to be around £25 million. Commenting on the sale, Peter Jackson, Kingfisher's Chairman, said: "OurTaiwanese joint venture has been a success, providing good investment returnsfor shareholders while also acting as a useful springboard for entering thelarge and fast-growing mainland Chinese market. However, after 11 years ofexpansion B&Q Taiwan now offers only limited opportunities for future marketshare growth for Kingfisher. This sale is consistent with our focus on capitalallocation and investment returns." Enquiries: Ian Harding, Group Communications Director 020 7644 1029 Nigel Cope, Head of Communications 020 7644 1030 Sarah Gerrand, Head of Investor Relations 020 7644 1032 Further copies of this announcement can be downloaded from www.kingfisher.com orby application to: The Company Secretary, Kingfisher plc, 3 Sheldon Square,London, W2 6PX. Notes to editors B&Q Taiwan has 21 stores having opened the first one in 1996. It operates 97,000square metres of selling space and employs over 1,800 people. There are 63 B&Q stores in China with plans to grow to at least 100 stores. Test Rite first started in Taiwan in 1978 as a major exporter of hand tools. Itnow operates a range of businesses in retailing, wholesaling and professionalservices. Company profile Kingfisher plc is Europe's leading home improvement retail group and the thirdlargest in the world, with over 775 stores in 10 countries in Europe and Asia.Kingfisher's main retail brands are B&Q, Castorama, Brico Depot and Screwfix.Kingfisher also has a 21% interest in, and strategic alliance with, Hornbach,Germany's leading large format DIY retailer, with over 120 stores in Germany andeight other European countries. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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