Distribution and Warehousing Network (Dawn) has sold its 49% noncontrolling interest in Grohe Dawn Watertech (GDW) to the Lixil Corporation of Japan for R324.5m. Dawn’s share price shot up 20% after the announcement. But closed 11% firmer at R1.06. The maker of a broad range of industrial, sanitaryware and kitchen products has struggled amid the crises in SA’s mining, construction and building industries and, more recently, agriculture. It will use the proceeds to pay down group debt of R200m and settle capital gains tax arising from the sale. GDW comprised about 10% of Dawn’s total revenues. Dawn will now become master distributor in sub-Saharan Africa for Lixil, one of the world’s biggest suppliers of water, housing, building and kitchen technologies. Lixil already owned the controlling 51% of GDW shares through Grohe, a sanitaryware maker based in Germany that is a wholly owned Lixil subsidiary. "We got top price and are going to pay off our debt and stay in a partnership [with L...
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