-- XJ International (HKG:1765) said its indirectly wholly-owned subsidiary agreed to subscribe for 600,000 Class B shares in Nasdaq-listed Intelligent Group at $12.50 each, for a total consideration of $7.50 million, according to a Thursday Hong Kong bourse filing.
Upon completion, Intelligent Group will become an indirect subsidiary of the company, with XJ holding about 85.2% of the target's voting power.
The company said the transaction constitutes a connected transaction as Intelligent Group is controlled by its controlling shareholder, Wang Huiwu.
The subscription is intended to create synergies in the education sector and support the group's international expansion, the filing said.
XJ's shares jumped nearly 9% in recent trade.