Lu Zhou Lao Jiao To Sell Stake In Huaxi Securities

Date:2011-11-15houhaizhen  Text Size:

November 15 -- Lu Zhou Lao Jiao (000568.SZ) intends to sell its stake in Huaxi Securities to controlling shareholder Luzhou Laojiao Group, reports Securities Daily, citing a company filing.

According to Lu Zhou Lao Jiao’s third-quarter report, Huaxi Securities contributed net profit of 9.47 million yuan to Lu Zhou Lao Jiao in the first three quarters of 2011, down 96 percent year-on-year.

Huaxi Securities had enlarged its total share capital in July, which led to Lu Zhou Lao Jiao’s shareholdings in Huaxi Securities decreasing from 34.85 percent to 24.99 percent.

According to an unnamed analyst, Lu Zhou Lao Jiao is expected to earn investment returns of about 1.4 billion yuan through the sale of its stake in Huaxi Securities.

Jian Aihua, an analyst at China Investment Consulting, said the stake sale will have little impact on the company’s main business of spirits production.

Jian said spinning off unrelated assets will help Lu Zhou Lao Jiao to focus on its spirits business.

Shares of Lu Zhou Lao Jiao were suspended from trading yesterday.

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