Singaporean investment company Kenon Holdings is selling half of its 24 percent stake in Shanghai automaker Qoros to private Chinese conglomerate Baoneng Investment Group.
Under an agreement signed in January, Kenon will transfer the 12 percent stake in Qoros to Baoneng for 1.56 billion yuan ($230 million), Kenon said.
After the deal, Baoneng will own 63 percent of Qoros and Chery Automobile will continue to own 25 percent.
Kenon may sell part or all of its remaining 12 percent in Qoros, Kenon said in a statement in January.
Early last year, Kenon said Baoneng had acquired a 51 percent stake in Qoros, leaving Kenon with 24 percent and Chery with 25 percent.
Qoros was established in 2007 as a 50-50 joint venture between Chery and Kenon’s subsidiary Quantum. Kenon later took over Quantum’s stake.
Qoros has struggled since its inception because of limited sales.
Qoros has an assembly plant in Changshu, a city about 100 kilometers (62 miles) west of Shanghai. The factory can build up to 150,000 vehicles a year.
But in 2018, the company delivered about 64,200 vehicles. For the first three quarters of the year, Qoros suffered a loss of 1.36 billion yuan, according to Kenon.
Baoneng said last year it plans to set up a tech center in Germany to help its auto manufacturing unit access and upgrade technology.