Hua Hong Grace Semiconductor (HKG:1347, SHA:688347) plans to acquire approximately 97.5% of Shanghai Huali Microelectronics for a consideration of 8.27 billion yuan, according to a Shanghai bourse filing on Tuesday.
Shanghai Huali Microelectronics produces 12-inch integrated circuit wafer foundry products.
The consideration will be funded through the placement of 190,768,392 shares for 43.34 yuan per share.
The funds will be used to pay the investors currently owning Huali, Huahong Group, Shanghai Integrated Circuit Fund, National IC Fund Phase II and SDIC Pioneer Fund.
The semiconductor company's Shanghai shares jumped 4%, while Hong Kong shares rose 1% during the midday trade.