Shanghai Jahwa (上海家化) has agreed to sell its 19% stakes in Sephora Shanghai and Sephora Beijing to Sephora Asia for 70 million euros ($81.8 million), according to a company filing. The two joint ventures, established in 2004 and 2006, operate Sephora’s online and offline businesses in China. Sephora Asia, an indirect subsidiary of LVMH, holds the remaining 81%. Jahwa’s investment in the ventures had already been written down to zero after three consecutive years of losses. The deal is expected to generate an after-tax gain of about 474 million RMB ($70.5 million). Jahwa and its subsidiaries are barred for two years from operating multi-brand beauty retail stores in China.

Related reading: What’s driving Sephora China’s 21-month traffic growth streak?