Reliance Global Holdings (HKG:0723) has placed a 10 million yuan refundable deposit to potentially acquire a controlling stake in Beijing Zhongran Novel Innovative Technology, under a previously signed memorandum of understanding with the seller, according to a Tuesday bourse filing.
The wood-supplying and money-lending company said its unit made the deposit for a 51% stake in the entity currently controlled by the seller, Guo Yanqing. If the stake acquisition is completed, the move would diversify Reliance's revenue stream and help the business grow by tapping into the automotive interior market.
Reliance shares are up 2% on the HKEX in Wednesday afternoon trading.