Lushang Life Services (HKG:2376) agreed to sell its controlling stake in Shandong Blue Shore Garden Engineering after an investor, Shandong Commercial Real Estate Development, injected 36.3 million yuan into the target company, according to a Friday filing with the Hong Kong bourse.
The investment increases Shandong Blue Shore Garden's registered capital to 40.8 million yuan from 20 million yuan. Of the total investment, 15.5 million yuan will be kept as capital reserves for the engineering firm.
Shandong Commercial Real Estate will hold a 51% stake, while Lushang Life Services will retain a 49% stake, reclassifying Shandong Blue Shore Garden Engineering as an associate instead of a subsidiary and removing it from the consolidated financial statements.
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