Xiamen Tungsten's (SHA:600549) plans to acquire a total of 30.17% in Jiangxi Jutong Industrial for a consideration of 593.3 million yuan, according to a Shanghai bourse filing on Friday.
Jiangxi Jutong is a firm that offers mineral resource extraction services at non-coal mines. It also provides hydroelectric power generation services.
The stake will be bought from Fujian Juhong Rare Metal Investment Partnership (Limited Partnership), Xiamen Sanhong Tungsten & Molybdenum and Fujian Rare and Rare Earth (Group), which currently holds 13%, 9.8% and 7.4%, respectively of Jiangxi Jutong.
Upon completion of the transaction, the Chinese tungsten materials supplier will own 31.5% of Jiangxi Jutong.
The company will also sign an acting-in-concert agreement with Rare Earth Group, under which it will lead the operation and management of Jiangxi Jutong.
The company's shares rose 4% during the afternoon trade.