Transtech Optelecom Science to Acquire Controlling Stake in Chinese Optical Fiber Manufacturer
Transtech Optelecom Science (HKG:9963) said it agreed to acquire a controlling stake in Chinese optical fiber manufacturer Futong Optoelectronics Technology (Hangzhou), according to a Hong Kong bourse filing Monday.Shares of the optical fiber cables maker gained 3% in morning trade Tuesday.Under the agreement, the firm will acquire 51% of Futong Optoelectronics via the issue of 78 million yuan worth of shares at HK$1.85 apiece.The 48.4 million shares to be issued represent 13.92% of the company's enlarged share capital.The company simultaneously entered a three-year sales agreement with Futong Optoelectronics to continue purchasing optical fibers with annual caps of 140 million yuan, 166 million yuan, and 169 million yuan until Dec. 31, 2028.
