Kingfisher has sold its 50 per cent joint venture stake in B&Q Taiwan for US$106.5 million (£52.7 million) to its joint venture partner Test Rite International.

In the year to February 3, Kingfisher made a pre-tax profit of£5 million from the venture. The sale, expected to be completed by December 31, should earn the company a profit of about£25 million, which will be used to reduce debt.

The retailer entered Taiwan in 1996 with an adapted B&Q format. It now has 21 stores across the country, employing about 1,800 people.

Kingfisher chairman Peter Jackson said: “Our Taiwanese joint venture has been a success, providing good investment returns for shareholders, while also acting as a useful springboard for entering the large and fast-growing mainland Chinese market. However, after 11 years of expansion, B&Q Taiwan offers only limited opportunities for future market share growth for Kingfisher.”