The managing director of furniture retailer Nick Scali (ASX: NCK) has offloaded half of his stake in the business to a Chinese company.
Anthony Scali, the MD of Nick Scali, entered into an agreement with Jason Furniture (Hangzhou) Co., Ltd (KUKA) to sell 11.04 million of his shares to a subsidiary of KUKA.
Scali will continue to hold 11.04 million shares in Nick Scali following the transaction, representing 13.63 per cent of the company.
KUKA is a Chinese company listed on the Shanghai Stock Exchange with a market cap of approximately $6 billion.
The company is a manufacturer and designer of furniture sold to approximately 700 customers in 120 countries, with annual sales of $1.4 billion in 2017.
The Chinese company is one of the largest manufacturers of furniture in China, and has been a supplier to Nick Scali for more than 10 years.
The deal is subject to approval by Chinese government departments.
Scali says the deal will allow the company to realise its growth strategies.
"Nick Scali Limited has been an important part of me for all my working life and I believe it continues to have great prospects," says Scali.
"I am looking forward to developing even stronger relationships with suppliers and to pursuing the growth opportunities for the benefit of all stakeholders."
Shares in Nick Scali Limited are down 2.30 per cent to $6.80 per share at 1.55pm AEDT.
Business News Australia
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