PRG to cut stake in Vietnam unit

PETALING JAYA: PRG Holdings Bhd’s Vietnam unit Furniweb (Vietnam) Shareholding Company (FVSC), is cutting its stake in Furnitech Components (Vietnam) Co, Ltd to bring in Lubra Beteiligungsgesellschaft mbH (Lubra) as a shareholder.

The move will see Furniweb Vietnam's 82.01% stake reduced to 45.06%, while its capital contribution of US$2.13 million (RM9.11 million) will also be slashed to US$1.76 million.

Two other minority shareholders, Scoot Filoot Pty Ltd (Scoot) and Shann Australia Pty Ltd (Shann), have also cut their stakes in Furnitech.

At the end of the deal Furniweb Vietnam will hold a 45% interest, Lubra the other 45%, while the minority shareholders will own the rest.

“The proposals with the entry of Lubra as a shareholder is expected to synergise the cost advantage of Furnitech and Lubra’s client base as well as its technical expertise in the development and supply of functional fittings for upholstered furniture,” PRG’s board said.