Japanese fabric manufacturer Kurabo Industries Ltd is to acquire 76.6 per cent stake in denim sales company KPK (HK) Ltd in a move that will see the Hong Kong-based firm become a wholly-owned unit.

Kurabo said in a statement that upon the expected completion of the deal with trading house Kanematsu Corp at the end of this month, KPK will become known as Kurabo Denim (HK) Ltd.

KPK was formed six years ago as a joint venture between Kurabo and Kanematsu and has since served as Kurabo’s core overseas base of its jeans business. It made a net profit of HK$8.3 million last year on sales of HK$195.1m.