Dalian Wanda Group's Wanda Plaza building is pictured in Beijing, China, May 17, 2016. Photo: Reuters/Kim Kyung-Hoon

Chinese billionaire Wang Jianlin, the founder of Dalian Wanda Group, has decided to sell the company’s 17% stake in Atletico de Madrid to Quantum Pacific Group, controlled by Israeli billionaire Idan Ofer, The Paper reported.

Though the amount of the acquisition has not been officially disclosed, it is reported by Spanish media EI Confidential that the transaction is estimated to be worth nearly €50 million (US$62.23 million).

In 2015, Wanda bought a stake in the football club for €45 million. It was the first time a Chinese company had invested in a premier European football club.

The move is considered to be the group’s divestment to cut its debt, following China’s crackdown on “irrational overseas investment,” which has labeled real estate, hotels, cinema, the entertainment industry and sports club as “sensitive” areas.

Prior to this transaction, Wanda sold three overseas real estate projects in the UK and Australia.