Redco Healthy Living's (HKG:2370) controlling shareholder, Redco Properties (HKG:1622), may reduce its stake in the company to 51% from 75% after the receivers proposed selling part of the pledged shares to China Billion International, according to a Monday Hong Kong bourse filing.
Shares of the Redco Healthy Living were down nearly 4% in Tuesday morning trade.
The proposed sale involves a 24% stake, or 48 million shares, for HK$45.1 million through a partial set-off against outstanding debt owed by Redco Properties.
The company said the receivers may proceed with the transaction by Tuesday unless Redco Properties repays the outstanding facility in full, finds an alternative buyer, or raises objections with reasonable grounds.