IHD Holdings has sold its 51 per cent interest in the Sheraton Towers Hotel project in Malaysia to Sheraton International for US$11.2 million as part of a restructuring to boost cash flow. The sale follows the firm's decision on Saturday to exercise its option to buy 100,000 C shares in Granton International from IHD chief executive Ch'ng Poh. Granton International is a joint-venture company established to develop a hotel and commercial complex known as Sheraton Towers and IHD Plaza in Kuala Lumpur. According to the option agreement signed on November 27, 1991, 100,000 C shares of Granton constitute one per cent of the shareholding, with no vote. The purchase of the one per cent of Granton held by Mr Ch'ng takes IHD's holding in the company to 51 per cent. A statement issued yesterday said IHD had sold 51 per cent of Granton International to Sheraton International, which would take full control of the venture. The company said the sale and purchase agreement between IHD and Sheraton was finalised on Saturday. Yesterday's statement said IHD was entitled to 51 per cent of the interest accrued on the deposits of Granton from the date of its incorporation to last Saturday, less 51 per cent of Granton's operating expenses of the same period. IHD said it had been provisionally calculated that the total interest less operating expenses to which IHD was entitled was HK$1.04 million. It said net proceeds of the sale would be HK$88.6 million, which would be utilised as additional working capital for new investments. IHD said it was formulating plans for a restructuring and new investments strategies geared towards widening the scope of its business prospects in Asia and China. Last month, the firm's bid to link up with China Strategic Investment in a HK$172.5 million share-swap deal failed after being blocked by minority shareholders.