Chinese pork production company WH Group revealed that CDH Investments, one of its major investors, is planning to sell 10.61% stake in the company worth about HK$9.25bn($1.19bn).
CDH is planning to offload a total of 1.55 billion shares at HK$5.95 each according to a report by Reuters.
Upon completion of the sale, CDH's stake will come down from 30.39% to 19.77%.
The sale will be carried out via a series of deals, including private placements to buyers that could include existing shareholders.
WH Group’s major investor Rise Grand Group has agreed to acquire 292 million of the 1.55 billion shares sold by CDH as per the publication.
Following the transaction, Rise Grand Group’s stake would increase from 34.02% to 36.01%.
WH Group headquartered in Luohe, Henan claims to be largest pork producer in the world.
It deals in the packaged meat products, fresh pork and hog production segments and its brands include Smithfield, Eckrich, Farmland, Gwaltney and Carando.
CDH Investments is a Chinese private equity group based in Beijing. The equity company claims to have invested in more than 150 Chinese firms.
Its other portfolio of investments includes Belle Group, Yurun, Modern Diary and Joyoung.
WH Group had gone for IPO issue in 2014 raising about $2bn, and at that time CDH had acquired 38.1% stake in the company.