Chevalier International Holdings is to sell a majority stake in its elevator distribution unit. It also plans to set up a joint venture on the mainland to develop properties in Hefei. The engineering and real estate firm will sell 51 per cent of wholly owned Chevalier (HK) to Toshiba Elevator and Building Systems for HK$695.6 million, according to a statement filed with the stock exchange yesterday. It will also acquire 20 per cent stakes in Toshiba Elevator (Shenyang) and Toshiba Elevator (China) for HK$121 million. Chevalier International chairman and managing director Chow Yei-ching said introducing Toshiba as a major shareholder in Chevalier (HK) would allow it to strengthen its competitiveness and marketability in Hong Kong and Singapore. The company said it expected to record a disposal gain of HK$648 million. The acquisition of stakes in the two Toshiba firms will enable them to become strategic partners in the development of the elevator business on the mainland. Separately, Chevalier International said it would invest 132.6 million yuan (HK$149.48 million) as registered capital for a 51 per cent stake of a joint venture on the mainland. The venture will build serviced flats and a shopping centre with a floor area of 182,000 square metres in Hefei, the capital of Anhui province. The partners are Anxing Development and state-owned Anhui Travel, which will hold 30 per cent and 19 per cent of the shares, respectively. Total development costs for the project are about 1.1 billion yuan and it is scheduled for completion in late 2011, according to the statement. The deal is subject to the approval of authorities, including the State-owned Assets Administration Department of Anhui. Shares in Chevalier International yesterday closed 5.62 per cent lower at HK$4.70 after resuming trading from a four-day halt.