Dynasty Fine Wines Group (HKG:0828) unit Dynasty Fine Wines (Renhuai) is planning to reduce its capital by 4.3 million yuan to 5.7 million yuan, a Tuesday bourse filing showed.

Dynasty Fine Wines (Renhuai) was formed under a joint venture agreement between Sino-French Joint-Venture Dynasty Winery, a unit of the company, and Guizhou Province Maotai Town Guowei Winery Group. The two parties owned a 51% and 49% respective stake in the JV.

Under the capital reduction, Guizhou Province Maotai Town Guowei Winery Group will be returned 4.3 million yuan after its shareholding is reduced to 10%.

Sino-French Joint-Venture Dynasty Winery's shareholding, on the other hand, will increase to 90%.

The capital reduction will enable the group to gain a super-majority ownership and control of the sauce-flavour baijiu business conducted by the joint venture.