May 6 (Bloomberg) -- Tianjin Development Holdings Ltd. said it will sell its stake in suspended Dynasty Fine Wines Group Ltd. to its parent for at least HK$890 million ($115 million).
Tsinlien Group Co., owned by the Tianjin, China, municipal government, will buy unit Famous Ever Group Ltd. from Tianjin Development, according to a Hong Kong stock exchange filing yesterday. Famous Ever’s sole asset is 558 million shares in Dynasty, a 44.7 percent stake, the company said.
Trading in Dynasty shares has been halted since March 22, 2013, pending an internal investigation by Ernst & Young and the publication of earnings for 2012 and last year. In an April 28 statement, Hong Kong-based Dynasty didn’t give a proposed date for resuming trading.
The purchase price for the Dynasty stake is subject to possible increase, said Tianjin Development, which is also based in Hong Kong. Tsinlien owns a 63 percent stake in the company. The deal is subject to approval by Tianjin Development’s independent shareholders.
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