Wedge Industrial Co. Ltd., a Chinese property developer, said it plans to sell its 50% stake in Changzhou Wedge Tianhai Property Co. Ltd. to a related Shenzhen company for 353.9 million yuan, according to a filing with Shenzhen Stock Exchange.
Shenzhen Wedge Real Estate Development Co. Ltd. will pay for the 50% stake in cash. After the transaction, Wedge Industrial will still hold the remaining 50% interest in Changzhou Wedge and remain as its controlling shareholder.
Shenzhen Wedge Real Estate Development operates as a subsidiary of Shenzhen Wanhong Investment Co. Ltd. Both Shenzhen Wanhong and Wedge Industrial are controlled by Shenzhen-based conglomerate Wedge group.
Wedge Industrial said proceeds from the transaction will support its ongoing business transformation. The company has been shifting its business focus from real estate to emerging sectors such as high-temperature alloys.
As of March 26, US$1 was equivalent to 6.27 yuan.