Debt-ridden China Huarong Asset Management said it has agreed to sell its stake in a regional commercial bank, as the embattled firm continues to offload assets and restructure its sprawling business, reports Caixin.
Huarong has signed a contract with a consortium consisting of Hunan Chasing Financial Holding Group and Central Huijin Investment to sell them its holdings in Huarong Xiangjiang Bank, according to the company’s filing to the Hong Kong Stock Exchange on Thursday.
The consortium agreed to buy the 40.53% stake, or 3.1 billion shares, for nearly RMB 12 billion ($1.8 billion), the filing said. State-owned Hunan Chasing will buy a 20.53% stake, while Central Huijin, a domestic arm of sovereign wealth fund firm China Investment Corp, will take over the remainder.