Quarella Holdings, a 50-50 joint venture owned by Rykadan Capital (HKG:2288) subsidiary Noble Stone Investments and Lead Rise International, will sell the sale share and sale loan of Quarella Group to Quarella Global for HK$240 million, according to a Tuesday filing with the Hong Kong bourse.

Quarella Group distributes construction and interior decorative materials, the filing said.

The consideration comprises HK$1 for the sale share and HK$240 million for the sale loan, the filing said.

The sale will help Quarella Holdings repay certain loans to Rykadan Capital and allow Rykadan to streamline its asset portfolio, the filing said.

Noble Stone is 87% owned by Rykadan.