Chinese conglomerate Jiangxi Jiangzhong Group announced Sunday it would restructure loss-making Jiangxi Paper Industry Co. Ltd. after buying a 28 percent stake in it, Shenzhen Daily reported Tuesday.

Under an agreement with Nanchang Haoyouduo Industrial Co. Ltd., the largest shareholder of Shanghai-listed Jiangxi Paper Industry, Jiangzhong Group has agreed to buy 45.1 million State shares of the paper maker.

However, the transaction was subject to approval by the China Securities Regulatory Commission and the State-owned Assets Administration and Supervision Commission, Jiangzhong Group said.

The group plans to restructure Jiangxi Paper Industry��s business through its health food making unit and the well-known wine brand Qinong once receiving green light from the regulators.

It holds a 18.39 percent stake in the paper maker through its subsidiary Jiangxi Paper Group Co. Ltd.

Jiangxi Paper Industry posted total assets of about 233.4 million yuan (US$28.2 million) for the third quarter of this year, nearly 500 million yuan less than a year earlier.

Source: Shenzhen Daily