Sundiro (SHE:000571) said its largest shareholder, Dalian Hesheng, will donate 15% equity in Lanpucheng to Sundiro's wholly-owned unit, Shanghai Lanpu, at zero cost.
The donated stake is valued at 779.0 million yuan, based on a third-party appraisal, and will increase Sundiro's attributable net assets by an estimated 116.9 million yuan, according to a Wednesday filing with the Shenzhen bourse.
The transaction, which requires shareholder approval, is part of efforts to resolve debt risks.
Shares of the coal producer and beef products manufacturer closed 9% lower Wednesday.