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Longfor unit buys Beijing Capital Land's 51% stake in subsidiary

The China Beijing Equity Exchange notified Beijing Capital Land Ltd. that one eligible bidder has met the requirements for the company's auction of a 51% stake in its Beijing Kaiyuanhean Investment Management Co. Ltd. subsidiary.

Longfor Group Holdings Ltd. unit Chongqing Longhu Tianjie Commercial Properties Co. Ltd. will acquire the stake at the base price of nearly 598.2 million yuan, according to a release.

Chongqing Longhu is also required to repay a roughly 1.19 billion-yuan loan extended by Beijing Capital Land to Beijing Kaiyuanhean, under the terms of the deal.

The vendor said proceeds from the sale will be used as general working capital.

As of Oct. 18, US$1 was equivalent to 6.94 yuan.