November 7 -- Shandong Hiking International (600735.SH) said it plans to offer a maximum of 63 million shares to eight designated investors at 11.41 yuan per share to fund the purchase of 662 million yuan worth of equity stakes in a number of makers of hair care products, reports Shanghai Securities News.

In addition, Hiking Intenational will sell its 75 percent and 51 percent stake in Shandong Haishun International and Shandong Hiking Seafoods for 7.26 million yuan and 8.45 million yuan, respectively.

Through the stake sales, the company exited the seafood and shipping businesses which are not as profitable as the hair care products business.

Hiking International lost 13.67 million yuan in 2010, and had posted slight profits year to date.

Hiking International said this will help the company to increase the level of profitability.

Source:CapitalVue