FILE PHOTO: Condominium towers, HSBC Holdings (Hong Kong) Limited and the Glossop Cartons building are seen in Hong Kong, China March 28, 2017. REUTERS/Bobby Yip/File Photo
HONG KONG (Reuters) - Mid-sized Hong Kong packaging services provider Glossop Group, said its acquisition of hard-linen goods maker AlphaPack Ltd was set to lead to improved profitability.
In a stock exchange filing on Friday, Glossop Group said a preliminary second-quarter review of AlphaPack was in line with management expectations. AlphaPack provides wood-based soft-linen packaging.
“The second-quarter result will mainly be influenced by AlphaPack,” it said. “The transaction is likely to result in increased liquidity and improved efficiency of our business.”
Glossop, one of Hong Kong’s main packagers of tobacco and personal care products, has a market capitalization of HK$1.2 billion ($145.83 million).
Its shares rose 5.3 percent on Friday before the statement was released.
This week, Glossop reported third-quarter net profit up 18 percent from a year earlier, partly due to AlphaPack acquisition.
The deal is still subject to regulatory approval.