Ronshine China Holdings Ltd.'s Fujian Taikun Trading Co. Ltd. subsidiary agreed to sell its 50% shareholding in Shanghai Kaitai Property Development Co. Ltd. to Greenland Property Group Co. Ltd. for a total cash consideration of approximately 1.00 billion yuan.
Pursuant to the conditional stake deal, Fujian Taikun is also divesting any interest in the properties comprising the Shanghai Xujing Project in Shanghai, which is the principal asset of Shanghai Kaitai. The buyer is a joint venture and a limited liability company established in China.
From the transaction, the seller expects to net about 1.00 billion yuan. Fujian Taikun intends to use the anticipated proceeds to finance potential investments in the property development sector and as general working capital of the group.
Ronshine China noted that it will not record any gain from the agreement that is expected to be completed 10 days after the deal takes effect.
As of March 18, US$1 was equivalent to 6.71 yuan.