Fulida Group Holdings Co. has agreed to buy 17 percent of Australia's livestock exporter Wellard on Monday after its CEO Mauro Balzarini sold nearly half of its shares to the Chinese textile maker.

Balzarini is poised to sell 66.32 million of his shares, allowing his private company WGH Holdings to repay a $15.8 million "separation payment" plus around $377,000 in interest it owes Wellard by the end of this month, according to ABC News.

Like Us on Facebook

Balzarini was pleased to announce that he will be in "a position to settle the separation payment due to Wellard."

Balzarini said that aside from being Wellard's significant shareholder, Fulida has long shown interest in the industry, Weekly Times reported.

"That Fulida has taken an equity interest in Wellard, and agreed to voluntarily escrow its shares, highlights its belief in the long-term future of our business, or industry and the potential that China represents," he said.

Following the purchase, Fulida will become Wellard's second biggest investor, based on a stock exchange filing on Monday. Meanwhile, WGH Holdings will remain Wellard's largest stock holder with an 80 million shares, a 20 percent slice of the business. The terms of the agreement have not been disclosed.

Following the deal, Wellard's share price plunged from $1.39 during its listing in December to 29 cents on Monday.

Since its initial public offering, which raised $298.9 million, Wellard's market value has plunged by 83 percent to $71 million, according to Bloomberg.

TagsFulida, Wellard, cattle exporter, livestock exporter, WGH Holdings, Mauro Balzarini