(Yicai Global) Sept. 20 -- Leshi Holding Beijing Co's sports subsidiary LeSports Culture Industry Development (Beijing) Co., Ltd. is about to complete an equity transfer, with Jia Yueting, founder of the group replaced by a new consortium to become the largest shareholder of the company, insiders said.

Jia Yueting has signed a share transfer agreement with the buyer to transfer most of his LeSports stake, Tencent Finance reported today. The buyer is not a single company, but a consortium of several powerful investors, it said without revealing the members of the consortium and the exact amount of the deal.

Mr Jia held a 30.66 percent stake in LeSports before the deal, as the largest shareholder in the company, with Leshi Internet Information & Technology Corp. [SHE:300104] also held an equity.

LeSports suffered a shortage of funds in the second half of last year, with huge amount of royalties in arrears, the report said. The group has paid more than USD152 million in royalties for LeSports, but still owes USD380.6 million in arrears.

The amount of the latest deal will cover all the debts of LeSports and the rest will go to the company's accounts, insiders said. After the new investors join the company, the board will be fully reshuffled to achieve "de-LeTVization" of the management system.

LeSports' future development strategy will be adjusted and a more effective business model will soon be set out, insiders added.