(Reuters) - Australia’s DuluxGroup Ltd (DLX.AX) said on Wednesday its majority-owned joint venture company DGL Camel International has agreed to sell most of its coatings business in Hong Kong and China to Yip’s Chemical Holdings Ltd (0408.HK).
DGL Camel International, which makes coating materials for building products, will retain business for the Selleys brand in Hong Kong and China along with a small part of the coatings portfolio, the company said in a statement.
Hong Kong-based Yip’s Chemical said in a separate statement it would buy the coating business for a headline purchase price of HK$113.9 million ($15 million).
DuluxGroup expects to complete the deal in the first half of the 2018 financial year, and expects core earning for Hong Kong and China to be in line with the previous year.
The company’s shares were 0.5 percent lower in early trade, compared to a 0.2 percent gain on the Australian benchmark index
Reporting by Nicole Pinto in Bengaluru; Editing by Grant McCool and Stephen Coates