Dec. 2, 2011 (China Knowledge) - Luzhou Laojiao Co Ltd<000568
>, which is engaged in the production and sale of liquor under the Luzhou Lao Jiao brand, announced today that it plans to sell a 12% stake Huaxi Securities Co to China Luzhou Laojiao Group.
The liquor maker said in a statement filed with the Shenzhen Stock Exchange
that sale of the stake is to strengthen its core business that is more profitable.
After the sale, the company will see its shareholding in the brokerage firm fall to 12.99%, no longer the latter's largest shareholder.
At the end of Sep. 30, the unaudited book value of Huaxi Securities was RMB 6.01 billion, while the appraisal value was RMB 9.04 billion.
In the first three quarters of this year, Huaxi Securities contributed RMB 9.47 million of net profit to Luzhou Laojiao.