Xiangyang Changyuandonggu Industry (SHA:603950) plans to raise 5.01 billion yuan through share placement to fully acquire Xiangyang Kanghao Electromechanical Engineering, according to a Shanghai bourse filing on Tuesday.
The stake will be bought from five investors.
The Chinese manufacturer of core diesel and gasoline engine components will place 168.4 million shares, representing 34.19% of the company's total shares, for 29.75 yuan per share.
The company's shares dropped 4% during the afternoon trade.