Hangzhou Zhongheng Electric (SHE:002364) said Contemporary Amperex Technology (SHE:300750, HKG:3750) will become the largest shareholder of its controlling shareholder, Hangzhou Zhongheng Technology Investment.
CATL will acquire 49% of Zhongheng Technology Investment for a consideration of 4.10 billion yuan through a capital increase, according to a Shenzhen bourse filing on Tuesday.
Under the transaction, CATL will subscribe for 14.4 million yuan of newly increased registered capital.
Zhongheng Technology Investment's registered capital will rise to 29.4 million yuan from 15 million yuan after the transaction.
Shares of the Chinese electrical products developer rose 4% in morning trading.