Joy City Property, the commercial real estate arm of Chinese state-owned Cofco Group, will delist from the Hong Kong Stock Exchange tomorrow, after its controlling shareholder, Grandjoy Holdings Group, completed a share buyback agreement.

The company, which went public in 2013, said in a statement that trading in its shares will cease at the close of business on Friday.

Grandjoy Holdings, which already holds a 64% stake in Joy City, repurchased shares from other investors in a private agreement valued at around HKD 2.9 billion (USD 372.8 million). Upon completion of the buyback, Grandjoy Holdings is set to acquire nearly 100% of Joy City.

The privatization process follows a broader trend in Hong Kong, where several Chinese companies have opted to delist amid market challenges.