Fortuna switches focus via electronics disposal
Fortuna International Holdings will switch its core business from electronics-components trading to selling food and beverages by disposing of 90 per cent of its electronics business.
Shareholders yesterday approved the company's proposal to dispose of Firstone Investments to Guangnan Hong (Group) for $62.21 million.
Vice-chairman and managing director David Chan Chuen-wing said at least 10 per cent of the proceeds of the proposed sale would be retained as working capital.
The rest would be used for future investments, although no investment plans had been finalised.
'We are anxious to find something definite . . . but we are still at a preliminary stage. Because of the Asian crisis, we are being more cautious,' Mr Chan said.
After the disposal, it would have all but 10 per cent of its interests in electronics-components trading.
Fortuna will concentrate on the manufacture and distribution of Shaoxing wine, 90 per cent of which is sold in the mainland. Mr Chan said Fortuna's wine had been selected as the official wine at state banquets.