13 November 2019
Leeport Machine Tool Company Limited agreed to dispose the shareholding in Mitutoyo Leeport Metrology Corporation to Mitutoyo Corporation. Mitutoyo Leeport Metrology Corporation is a joint-venture company formed by Mitutoyo Corporation (51% shareholding) and Leeport Machine Tool Company Limited (49% shareholding) in 2003. The joint-venture company provides a complete range of Mitutoyo precision measuring instruments and related equipment to its customers in Hong Kong and mainly in Southern China. Due to the keen competition in the measuring equipment market in Southern China in recent years, Mitutoyo has decided to restructure its business in Southern China by, among others, consolidating its interests in Mitutoyo Leeport Metrology Corporation.
As an incentive for the Group to dispose of its interests in Mitutoyo Leeport Metrology Corporation, Mitutoyo has also agreed to appoint the Group as its preferred distributor in Southern China after the Disposal. Given that the Group is already the authorised distributor for Mitutoyo’s products in Central and Northern China, the aforesaid preferential treatment would enable the Group to expand its distribution business in the PRC.
The completion date of the disposal will be by end of January 2020.