New | Jeweller Man Sang to spin off distributor arm

Jewellery maker Man Sang International has proposed to spin off its wholesale distributor, MSJ, to finance future expansion.

Shares of Man Sang rose 2.53 per cent to 81 HK cents as of 10.30am after the announcement.

MSJ and Man Sang had “different growth paths and different business strategies”, said a company statement filed with the stock exchange. The proposed spin-off will set up separate platforms for the business development of the two groups.

MSJ is a wholly owned subsidiary of the company and is mainly involved in purchasing, processing, designing, production and wholesale distribution of pearls and jewellery products.

The company said shareholders would be entitled to one MSJ share for every five Man Sang shares they held.