ZO Future (HKG:2309) agreed to sell about 51.7% of Birmingham City Limited (BCL) and assign a 19.2 million pounds sterling shareholder loan to Shelby Companies (SCL) for total cash consideration of about 5 million pounds sterling, according to a Nov. 7 Hong Kong bourse filing.

Shares of the firm gained nearly 2% in Monday morning trade.

Following the transaction, the group ceased to hold any equity interest in BCL, which is no longer a subsidiary and will be deconsolidated from the group's financial statements.

Net proceeds are estimated at HK$51.8 million after expenses, the filing added.

ZO Future said about HK$30 million will be provided as a loan to its associate ZO Motors North America, HK$10 million for inventory purchases of new energy vehicles and parts, and the remainder for working capital.

The company said the disposal releases it from certain obligations under prior financing agreements and enables it to focus resources on expanding its new energy automobile operations.