Liaoning Fu-An Heavy Industry's (SHA:603315) controlling shareholder, Fuan Holding, plans to divest 10% of the company's stake for 449.2 million yuan, according to a Shanghai bourse filing on Thursday.
Fuan Holding will transfer 32,040,000 shares to Zhuhai Hengqin Caidong Fund Management and Wuhan Zhenguo Private Fund Management. Both investors will hold 5% each.
After the transaction, Fuan Holding's stake will decline to 40.86% from 50.87%, but it will remain as the company's controlling shareholder.
The Chinese large steel castings manufacturer's shares jumped 10% during the morning trade.