PEC, the plant and terminal engineering specialist, has, on May 6, entered into a sale and purchase agreement (SPA) with Huizhou Qi An Enterprise Management, Huizhou Mu Sheng Enterprise Management and Huizhou Ze Xi Enterprise Management (collectively known as the purchasers), for the sale of its 25% stake in its wholly-owned subsidiary, Huizhou Tianxin Petrochemical Engineering (Tianxin) for a total cash consideration of RMB7.5 million ($1.5 million).

Of the total amount, Qi An, Mu Sheng and Ze Xi will each pay RMB3.6 million, RMB2.1 million and RMB1.8 million respectively.

The purchasers will have to transfer their respective consideration amounts to PEC within three months of the date of execution of the SPA.

PEC, on the same day, entered into a shareholders&rsquo agreement (SHA) with the purchasers in respect of the disposal.

Under the SHA, Tianxin will have a board of a maximum of four directors. PEC is entitled to appoint three directors, while the purchasers are entitled to appoint one director.