Nick Scali's MD offloads half his shares to Chinese company

Nick Scali's MD offloads half his shares to Chinese company

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.

Never miss a news update, subscribe here. Follow us on Facebook, LinkedIn, Instagram and Twitter.

Business News Australia

Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support

Deliver on sustainable business promises with Modern Group’s WincovER rating
Partner Content
As a business owner, you’ll know that sustainability is a core part of developing...
Modern Group
Advertisement

Related Stories

Balmain Leagues Club $500m redevelopment with Rozelle Village planned to start by mid-2023

Balmain Leagues Club $500m redevelopment with Rozelle Village planned to start by mid-2023

Chinese developer Heworth has rejigged its plans for the redevelopm...

Butter Insurance raises $1.3m to roll out insurance-at-checkout vision

Butter Insurance raises $1.3m to roll out insurance-at-checkout vision

Sydney-based insurtech Butter Insurance is gearing up for its natio...

TMG Developments looks to sell Sydney's iconic Manly Wharf

TMG Developments looks to sell Sydney's iconic Manly Wharf

The family-owned company that redeveloped the Manly Wharf as a food...

Ellume plucked out of administration by rapid test competitor for $57m

Ellume plucked out of administration by rapid test competitor for $57m

Brisbane-based rapid COVID-19 test maker Ellume has been plucked ou...