China Yuchai International (CYD) said Tuesday that LKN Investment International Pte. Ltd.,a wholly-owned subsidiary of HL Global Enterprises Limited, entered into a conditional equity transaction agreement, together with a supplemental agreement, to sell its 60% equity interest in Copthorne Hotel Qingdao Co., Ltd to Qingdao Haiyi Jun Zhuo Culture Travel Property Investment Co Ltd.
China Yuchai has a 48.9% equity interest in HL Global Enterprises.
The consideration for the proposed sale is RMB214.4 million, or about $32.5 million. Qingdao Haiyi has also agreed, among other things, to pay a sum of RMB15.7 million, together with interest, to LKN Investment International as full settlement of a shareholder’s loan of a principal amount of RMB21.9 million granted by LKN Investment International to Copthorne Hotel.
Completion of the proposed sale is expected to take place before October. The financial effects of the proposed sale on the company have not been finalized and will be announced once it is available.