Moutai Group Relinquishes Control of Unit, Removing Hurdle to IPO

The parent of luxury liquor-maker Kweichow Moutai has agreed to hand over most of its stake in a wholly owned liquor-making subsidiary to a local government agency in a move that could help the company comply with rules that stymied a prior attempt to list it.

The deal will allow China Kweichow Moutai Winery Group Co. Ltd. (Moutai Group) to revive a plan to spin off the subsidiary, just as the government of its debt-ridden home province of Guizhou seeks to double the value of the local liquor industry by 2025.