International Finance Corp, the World Bank's private investment unit, agreed to pay 145.9 million yuan (HK$137.5 million) for a 10 percent stake in the parent of Yantai Changyu Pioneer Wine, China's biggest wine producer.

The purchase needs approval from Beijing, Changyu Pioneer, based in Shandong province, said in a statement to the Shenzhen stock exchange Thursday.

Italian winemaker Illva Saronno Holding in February agreed to pay 481 million yuan for 33 percent of Changyu Wine Group.

The listed unit said in December Yantai State Asset Management Bureau planned to sell a 33 percent stake in its parent to one overseas investor and 10 percent to another.

China is encouraging state-owned companies to sell stakes to overseas investors to help them expand. Anheuser-Busch, the world's largest brewer, Heineken and Scottish & Newcastle are among foreign companies that have acquired stakes in mainland beermakers in the past two years.

Changyu Pioneer's A shares dropped 0.5 percent to 18.91 yuan Thursday. They have surged about 59 percent this year. BLOOMBERG

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