Rengo has confirmed that it will transfer all its equity in its corrugated packaging subsidiary, Guangdong Rengo Packaging Co Ltd, which is located in Foshan City, Guangdong, China, to Sun Hing Paper Company Ltd, a subsidiary of Hung Hing Printing Group Ltd.
Hung Hing Printing is an equity-method affiliate of Rengo in which Rengo holds a 29.91% stake. Although it will mean that Guangdong Rengo will no longer be Rengo’s consolidated subsidiary, Rengo will transfer its equity in Guangdong Rengo to Sun Hing Paper to support Hung Hing Printing’s plans aimed at expanding its corrugated packaging business in Guangdong.
