(Yicai Global) Jan. 4 -- A unit of Bauing Group, a Chinese landscape and interior design firm, will transfer its majority stake in an unprofitable Indonesian joint venture to Jakarta-based furniture maker Eksotika Abadi.
Bauing Construction Holding will sell its 60 percent stake in Bauing Construction Group Indonesia to Eksotika Abadi for USD10.7 million, the Shenzhen-based firm said in a statement yesterday. The remainder belongs to Indonesian firm International Cakrawala Surya.
The JV was in the red from January to September last year, according to unaudited financial data in the statement.
At the start, the JV earned Bauing Construction Holding some income but changes in the political and operating environment have caused the business to shrink, which has led the parent to decide that Indonesia is no longer a priority in its overseas strategy, the shareholder added.
Bauing Construction Holding's stock price [SZ:002047] has risen 1.79 percent to CNY6.82 (USD1) as of at 11.03 a.m.
Editor: Emmi Laine