Japanese trading company Itochu has decided to sell its stake in China Foods Investment (CFI) in an effort to make a $10.4bn investment in Chinese state-owned firm Citic.
The company will now sell its 74.1% shares in Chinese food unit back to the firm for JPY161.9bn ($1.4bn). The remaining 25.9% shares of CFI are controlled by a unit of Japanese firm Asahi Group.
As part of this new development, Itochu will also buy shares that China Foods holds in China's instant noodles maker Ting Hsin.
A statement from the company said that it has revaluated the scope of its food related business and changed the structure of its investment in Ting Hsin to develop and advance a new operating strategy for its food business in Asia.
This revaluation plan will give the company a JPY60bn ($500.86m) gain for the year.
In January this year, Itochu and the agribusiness firm Charoen Pokphand Group announced plans for a 50-50 investment in Citic.
Recently, Itochu food sales and marketing subsidiary agreed to acquire the shares of common stock of the Osaka Daiichi Rice.
Image: Itochu headquarters in Tokyo. Photo: courtesy of Lombroso.