Lianlian DigiTech (HKG:2598) agreed to sell its 15% stake in Express (Hangzhou) Technology Service, a joint venture with AmEx in mainland China, to its partner for 1.6 billion yuan.

Simultaneous with the disposal, Express (Hangzhou) Technology plans to increase its registered capital by 2.33 billion yuan, bringing its total registered capital to 8.09 billion yuan.

Two Amex entities agreed to pay a combined 3.2 billion yuan for the registered capital increase, according to a Friday disclosure with the Hong Kong Exchange.

Upon deal completion, Lianlian Digitech's shareholding in the joint venture will fall to 17.63% from 45.22%, while Amex's JV ownership will increase to 82.37% from 54.78%.

The digital payment solutions provider said the disposal would allow it to achieve an investment return and reallocate resources to develop its principal business.