Pacific Challenge Holdings chairwoman Lily Chiang has sold a 29.5 per cent stake in the company for more than five times the market value of the shares. E1 Media Technology - 60 per cent owned by Ms Chiang - will net HK$153 million from the sale to investor Zhang Mingyu. The premium comes despite Pacific Challenge being embroiled in legal action with Norwegian shareholder Kistefos Investment. Kistefos alleged Ms Chiang - also vice-chairwoman of the Hong Kong General Chamber of Commerce - was running the company in a way detrimental to minority investors. The transaction values shares in Pacific Challenge, involved in corporate finance and stock trading, at HK$1.81 each - 5.56 times yesterday's closing price of 32.5 HK cents. E1 Media, Ms Chiang and another shareholder will place another 4.17 per cent stake in Pacific Challenge with investors independent of Mr Zhang at 29 to 32.5 HK cents a share. After the transactions, Ms Chiang will hold no shares in Pacific Challenge and will resign from the board. Under Hong Kong regulations a general offer for all the shares in a company is triggered if one shareholder acquires a stake exceeding 30 per cent. The transactions will proceed only if Mr Zhang does not have to make a general offer, according to the company. No reason was given for the premium. Ms Chiang could not be reached for comment. Kistefos said its legal action would continue. Managing director Erling Thiis said: 'We are pursuing this vigorously - her decision to sell has no implication for us at all.' Kistefos' stake in Pacific Challenge will remain unchanged at 21.78 per cent, making it the second-largest shareholder. The court action is being pursued in Bermuda where Pacific Challenge is incorporated. Kistefos filed a petition last March alleging Pacific Challenge was being run in a manner 'which is oppressive or unfairly prejudicial' to certain shareholders. Kistefos sought for either the company to be wound up or its stake be bought back. In October, the Bermuda court threw out the application to have Pacific Challenge wound up but ruled a case would be heard on whether Kistefos' stake should be bought out by the company. In December, Pacific Challenge filed an appeal against the decision to proceed. This month, Kistefos also appealed the decision that Pacific Challenge could not be wound up. The cases are scheduled to be heard in the Bermuda courts in mid-June.