Conglomerate First Pacific Co has agreed to sell its regional computer distribution arm, Tech Pacific, to Dutch-listed associate Hagemeyer for US$250 million.
The transaction was approved by Hagemeyer's board yesterday as the Dutch marketing and distribution company said first-half net profit rose 26.9 per cent to 141.2 million guilders (about HK$538.94 million).
Hagemeyer said it had agreed to buy Asea Skandia, the Asea Brown Boveri group's electrical-distribution materials business in Scandinavia, for an undisclosed amount.
First Pacific said it decided to sell Tech Pacific to Hagemeyer to concentrate its pure distribution businesses in its 39 per cent-owned Dutch unit.
The price equates to about 13 times Tech Pacific's earnings this year.