Tianjin Development to Sell Dynasty Fine Wines Stake to ParentJoshua Fellman
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.