(Yicai Global) Oct. 18 --Foton Motor will sell off a 67 percent stake in wholly-owned unit Brogward Automobile, the classic German auto brand that it revived in 2014, for CNY3.9 billion (USD563 million).

The firm's board has reviewed and approved the transaction to take place on the Beijing Equity Exchange and it will now move forward with a company shareholder review, the Beijing-based firm said in a statement.

The buyer will have to repay a loan of USD616.6 million in the target company to Foton within 3 years of the transaction's close. The automaker will maintain a33 percent share in the firm after a deal is completed.

Foton bought the Borgward brand for EUR5 million (USD5.7 million) in 2014 with the hope of capitalizing on the German firm's lineage to gain extra market share in China. Despite the launch of multiple sports utility vehicle models, Brogward has continued to bleed money and has become a major financial burden for Foton.