Hong Kong, Oct 18 (Reuters) - China-backed Guangzhou Investment Co Ltd said on Friday its Guangzhou paper joint venture will sell its workshops and other assets for 660 million yuan (US$79.7 million) to cut debts amid an asset reorganisation. But Guangzhou Paper Ltd, which is 51 percent held by Guangzhou Investment and 49 percent owned by Guangzhou Paper Holdings, will lease the assets back to continue the operation of its pulp and paper businesses, it said in a statement. The Guangzhou government's investment flagship said the transaction will lift Guangzhou Paper's competitiveness and increase its attractiveness in any further fund-raising exercises, including from debt and capital markets. Guangzhou Paper agreed to sell the assets to its shareholder, Guangzhou Paper Holdings, for 660 million yuan to be satisfied by discharging liabilities equivalent to that amount owed to Guangzhou Paper Holdings. The price represented a premium of 1.5 percent over the unaudited book value of the assets of about 650.4 million yuan as at August 31, it added. The transaction is subject to shareholder approval and if required, the consent of the company's creditors. The consent is expected to be obtained by the end of November, the company said. Guangzhou Investment is mainly engaged in property development, the manufacturing and sale of pulp, paper and cement and the operation of toll roads and bridges. Shares of Guangzhou Investment were unchanged at HK$0.455 on Friday morning after easing 15.7 percent in the past month through Thursday's close. (US$1=8.28 yuan).