Limited opportunities for market share growth, says chairman.
Kingfisher plc has agreed to sell its 50% joint venture stake in B&Q Taiwan to its joint venture partner, Test Rite International, for a total cash consideration of US$106.5 m (£51.6 m).
The sale is expected to be completed by December 31, 2007 with the proceeds used to reduce debt. Profit from the sale is expected to be approximately £25m.
Commenting on the sale, Peter Jackson, Kingfisher's chairman, said that while the Taiwanese joint venture has been a success, there were limited opportunities for growth.
The transaction is subject to the approval of the Taiwanese Investment Commission.
Taiwan was Kingfisher's first entry into Asia in 1996. Supported by its joint venture partner, B&Q quickly expanded across Taiwan and now operates 21 stores.
Test Rite International's main activities are importing and exporting of hand tools, auto parts, machinery, furniture and various home appliances.
It exports its products to the United States of America, Canada, Europe and other countries.