Yangtze Optical Fiber and Cable Joint Stock Company (HKG:6869) agreed to acquire the remaining 25% stake in YOFC Shanghai from Draka Comteq B.V. for 12 million euros in cash, according to a Thursday Hong Kong bourse filing.
Upon completion, YOFC Shanghai will become a wholly-owned subsidiary of the company, and its financial results will be consolidated into the group's financial statements.
YOFC said the acquisition will strengthen its optical communications business by integrating upstream and downstream production capacity and improving its ability to meet market demand.
The purchase will be funded from internal resources and remains subject to regulatory registrations and completion procedures.
Shares of the cable manufacturer were up nearly 9% in Friday's midday trade.