Australia's DuluxGroup says unit to sell China, HK coatings business (updated)

Yips Chemical Holdings

02/01/2018 23:17

(Adds details about divestment, share movement) 
    Jan 3 (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 
 .AXJO  
 
 
($1 = 7.8150 Hong Kong dollars) 
 
 (Reporting by Nicole Pinto in Bengaluru; Editing by Grant 
McCool and Stephen Coates) 
 ((Nicole.Pinto@thomsonreuters.com; +91 80 6749 1130; Reuters 
Messaging: nicole.pinto.thomsonreuters.com@reuters.net)) 
 
Keywords: DULUXGROUP M&A/YIP'S CHEMICAL