(Yicai Global) May 21 -- Centre Testing International Group is preparing to buy a 90 percent stake in German vehicle testing service provider Imat-Uve for EUR19.01 million (USD23.3 million), a move that will help lift the Chinese third-party testing and certification company’s brand recognition in Germany.

Centre Testing will pay cash and the final transaction price will be determined closer to the settlement date depending on the latest financial indicators, it said yesterday.

The purchase will improve Centre Testing’s overall competitiveness and improve its standing with well-known German carmakers, the company said. Imat-Uve, which develops and tests auto materials, parts and even finished vehicles, has units in Germany, South Africa, the US and China.

Monchengladback-based Imat-Uve had assets of EUR3.39 million (USD4.1 million) as of the end of last year, according to Centre Testing's statement. It posted losses of EUR291,000 (USD356,079) in 2020 on revenue of EUR15.76 million.

Centre Testing’s share price [SHE:300012] was trading up 0.64 percent at CNY33.87 (USD5.30) as of 2:15 p.m. today.

Editor: Kim Taylor