(Yicai Global) Aug. 15 -- Automobile electronic systems manufacturer Shenzhen Soling Industrial Co. [SHE:002766] plans to buy a 95-percent stake in Shanghai Hangsheng Industry Co., a Chinese leader in the field.

The Guangdong-based firm said that its board of directors adopted an acquisition proposal on August 11, and the company will pay Shenzhen Hangsheng Electronics Co. USD21 million (CNY143 million) in a cash deal. Shenzhen Hangsheng Electronics will hold a 5-percent stake when the deal is complete.

Shanghai Hangsheng Industry was established in 2002. In recent years, it has gradually expanded its intelligent and autonomous driving business based on its research and development.

Shanghai Hangsheng Industry's core products are audio and video entertainment systems for commercial vehicles, safety controls and automotive networking equipment, including intelligent control and tire pressure monitoring technologies, Soling Industrial said. Shanghai Hangsheng Industry has long-term cooperative relationships with several Chinese commercial vehicle factories.

Soling Industrial said it will grow its market share by integrating Shanghai Hangsheng Industry's automobile networking equipment manufacturing and R&D capabilities.