(Yicai Global) Sept. 9 -- A subsidiary under China's Kuka Home is selling a 13.63 percent stake in Australia's Nick Scali Furniture for AUD73.4 million (USD50 million).

The Hangzhou-based seller will fetch AUD6.65 (USD4.51) a share and complete the sale tomorrow, it said in a statement yesterday. It became the target's second-largest shareholder after buying the stake for AUD77.3 million in March 2018. Factoring in the sale price and investment income, Kuka will pocket a little under AUD1.1 million from the sale, a 2 percent return on its investment.

Kuka's share price [SHA:603816] had slid 0.72 percent to CNY33.18 (USD4.62) as of 10.28 a.m., while the benchmark Shanghai index was up 0.37 percent.

The sale comes after Kuka broadened its overseas expansion out west via tie-ups with American sofa maker La-Z-Boy, Italian furnisher Natuzzi and Germany's leading furniture brand Rolf Benz.

Founded in 1962, Nick Scali's main business involves importing and retailing household furniture and fittings, such as sofas, tables and carpets. As of June 30, it had AUD85.2 million net assets on a total of AUD172 million. In the year ending the same date it had profited AUD42.1 million on income of AUD268 million.

Editor: James Boynton