Greentown China Holdings will sell its 50% holdings in two real-estate joint ventures to Sunac China Holdings, its partner in the ventures.
If the preliminary agreement goes ahead, the deal will end an ongoing dispute between the two companies after they decided not to proceed with the purchase of a stake in Greentown by Sunac last year.
Greentown will receive around CNY3.39bn in cash following a successful conclusion of the transfer. In addition, it will buy some stakes held by Sunac in various ventures.
