November 24 -- Jiangsu Sainty (600287), a company which produces and processes garments, will transfer stakes in four property companies to effective controller, Jiangsu Guoxin Investment Group, for 224 million yuan, reports 163.com, citing a company filing.

Sainty expects the transaction to bring in a profit of 181.75 million yuan.

The debts that the four property companies owe to Sainty will be repaid by Guoxin Investment Group.

According to a previous filing, Sainty will transfer its stake in Zking Property and Casualty Insurance (Zking Insurance) to Guoxin Investment Group for 294 million yuan, and acquire 99 million shares in HuaAn Securities from Guoxin Investment Group for no more than 172 million yuan.

The net assets of the four companies attributable to Sainty totaled 42.53 million yuan as of end August.

The discrepancy will be settled by Guoxin Investment Group in cash.

Zking Insurance has not recorded a loss since its inception. The book value of Zking Insurance attributable to Sainty was 151 million yuan as of end August.

HuaAn Securities had posted 2010 net profit of 536 million yuan.

The book value of HuaAn Securities attributable to Guoxin Investment Group was 139 million yuan.

Shares of Jiangsu Sainty fell 1.49 percent to trade at 8.57 yuan per share at 14:38 today.

Source:Capitalvue