Pearl Oriental Holdings' controlling shareholder, Wong Kwan, will sell a 29.9 per cent stake to China Wanan Group, 50 per cent owned by Hong Kong-listed Sun Man Tai Holdings, for HK$112 million. The selling price, 2.8 HK cents per share, represents a 44 per cent discount to its closing price of five HK cents on December 6. It also represents a 49 per cent discount to its net asset value of 5.5 HK cents per share, as of December 31 last year. The counter rose 16 per cent to 5.8 HK cents yesterday morning after resuming trading but closed at five HK cents, the same figure it was at before suspension. Under the deal, Mr Wong will also buy back Pearl Oriental's Internet and telecommunications assets for HK$30 million. Pearl Oriental believed that Internet and telecommunications had very little synergy with its existing core businesses, which were principally property and hotel assets. In a company announcement, Mr Wong said the group's financial difficulties could best be resolved by the proposed share sale to the company controlled by Sun Man Tai, which has considerable experience in property development in China. Mr Wong will also lend HK$30 million to Pearl Oriental for six months at the prime interest rate and has agreed to waive his rights and benefits in a shareholder's loan of HK$48 million. Mr Wong, after selling his 4.01 billion Pearl Oriental shares to China Wanan, will still hold 20.27 per cent of the company. He will resign as a director. With the share sale, the cash injection and the rights waiver on the shareholder's loan, Pearl Oriental owes Mr Wong about HK$79 million.