] Dongbu Lightec
, South Korea’s LED lighting manufacturer, plans to sell a portion of its stake in a Canadian joint venture, eight years after it was established.
Dongbu Lightec Canada, which is a 50: 50 JV between the Korean firm and Raku, targets premium light-emitting diode lighting markets including department stores and duty-free shops in North America.
“Negotiations with Canadian companies are currently ongoing but a detailed offer has not been confirmed yet,” Dongbu Lightec said in a regulatory filing on Dec. 19.
According to sources familiar with the deal, the Korean lighting company seeks to sell its 30 percent stake in the Toronto-based arm while keeping the remaining 20 percent.
It plans to use the proceeds from sale to enter the procurement lighting market for use by public institutions and government bodies.
Over the past three years, Dongbu Lightec Canada has grown at a robust pace of over 40 percent. It logged a net profit of 9.6 billion won (US$8.09 million) in 2015, 14 times higher than what it posted in 2009.
In accordance with the growth, the book value of 50 percent stake in the Canadian unit surged to 5.6 billion won as of the end of 2015 from 820 million won in 2008.
By Park Han-na (firstname.lastname@example.org)