The Quarto Group has agreed a sale of its stake in Hong Kong-based Regent Publishing Services Ltd for $7.0m (£5.6m).
Quarto's 75% stake in the publishing services business, which specialises in buying print and book production within Southeast Asia, has been sold to the Hong Kong-based 1010 Printing Group Ltd, which is listed on the Hong Kong Stock Exchange.
Quarto has owned the business, founded by George Tai, for over 30 years.
Quarto c.e.o Marcus Leaver said the sales of Regent would go towards paying the group’s net debt and allow the company to concentrate on becoming the “dominant publisher of illustrated books globally.”
"We believe Quarto has a unique opportunity in our fragmented industry to become the dominant publisher of illustrated books globally,” Leaver said. “The sale of Regent will allow Quarto to focus fully on what it does best - to make and sell books. Regent has performed well since it was founded and George Tai has been a loyal partner to the group for over 30 years. 1010 Printing Group Ltd., one of Quarto's long-term and most valued printing suppliers, will be a good home for Regent and all of its people."
The consideration for the disposal is $7.0m which includes a payment of $2.5m (HK$19.5m) for the group's share of the excess cash in the business, payable in cash on completion, which is expected to take place on 31st March 2017.
In the six months to 30th June 2016, Quarto’s revenue was up 8% year-on-year to $73.3m (£56.43m). However, adjusted group operating profit was $0.4m (£0.31m), down from $0.7m (£0.54m) a year earlier and loss before tax was $1.4m, less than the $1.6m last year.