China Enterprises Ltd. has sold its ownership interests in Hangzhou Zhongce Rubber Co. Ltd. to CZ Tire Holdings Ltd. for a purchase price of $94.41 million.
The purchase consists of the 26% share that China Enterprises held in Hangzhou Zhongce Rubber Co. through its wholly-owned subsidiary, China Tire Enterprises Ltd. In addition to tires, Hangzhou Zhongce Rubber Co. produces carbon black and other materials used in the manufacture of tires.
Following the sale, China Enterprises’ assets “now primarily consist of the cash that it received in connection with the sale described above and certain investments in financial assets,” the company said in a statement. “The board of directors and management of the company are actively considering all alternatives available for the use of the cash received.”