Kanematsu to sell RI stake

Kanematsu to sell RI stake

TOKYO (AFX-ASIA): Kanematsu Corp. said it will sell a 40 percent stake in cotton sales unit PT Nikawa Textile Industry based in Jakarta, Indonesia to Nisshinbo Industries Inc. for an undisclosed amount.

After the acquisition, the stakeholding of Kanematsu in Nikawa will fall to 10 percent from the current 50 percent, while that of Nisshinbo will rise to 60 percent, from 20, Kanematsu said.

Kanematsu said it expects to cut interest-bearing debt further at the group level for the current fiscal year following the acquisition, although its earnings forecasts remain unchanged.