Watch and jewellery maker Egana International (Holdings) is close to finalising acquisitions of two companies with exposure to watch manufacturing and distributing in the United States, executive director Peter Lee Ka-yue says.
The move aims to widen further its source of earnings as it plans to spin off its European-based jewellery arm Egana Jewellery and Pearls on the Hong Kong stock exchange next month.
The acquisitions would be finalised shortly after the proposed $439 million rights share sale by the parent company, Mr Lee said.
About $150 million of the proceeds will be spent on the acquisitions.
'We hope the US market will generate 10 per cent of our group's turnover in two to three years' time, compared to 3 per cent last year,' he said during a visit to Egana's production base.
About a week ago, the parent launched a combined rights issue, bonus share distribution and spin-off, a complicated deal which would allow the parent and Egana Jewellery to raise capital while existing shareholders' interest in the companies would not be diluted.
