Cinda International Holdings Ltd. unit Cinda International Capital Management Ltd. has put up for sale its entire 55% stake in joint venture Fujian Strait Cultural Industry Equity Investment Management Co. Ltd., or FJSC, according to a Dec. 28 release.
The company plans to sell the stake at an indicative price of 16 million yuan, which is based on the joint venture's net asset value of about 23.8 million yuan as of Dec. 31, 2017. The bidding process will remain open for 20 days from Dec. 29.
FJSC is involved in private equity investment and fund management. It reported after-tax net profits of 5.2 million yuan and 3.0 million yuan for 2016 and 2017, respectively.
Subject to the carrying value of FJSC at the date of completion of the stake sale, Cinda International expects to record an unaudited pretax profit of about 2.9 million yuan from the sale. It plans to apply any net proceeds for general working capital purpose or potential investments in the future.
As of Dec. 28, US$1 was equivalent to 6.88 Chinese yuan.