(Yicai Global) Nov. 23 -- Chint Electrics, a Chinese maker of low-voltage appliances, said it plans to buy a controlling stake in Shenzhen-listed Tongrun Equipment Technology, a producer of boxes and cabinets for metallic tools, for about CNY1 billion (USD140 million).

Chint will purchase 30 percent of Tongrun Equipment for CNY9.54 (USD1.34) a share, a little under the CNY9.55 closing price on Nov. 16, the Wenzhou-based buyer said in a statement yesterday.

Tongrun [SHE: 002150] surged by the 10 percent exchange-imposed limit today to close at CNY10.51 (USD1.47), after trading in its shares was suspended since Nov. 16 pending an announcement on control of the firm.

Chint will inject the solar inverter-related assets it controls into Tongrun, which produces the sheet metals used in the devices, the company added, noting that the value of such assets has yet to be appraised. Chint’s photovoltaic inverter business is rapidly growing, it pointed out. 

After jumping almost 4 percent earlier today, Chint’s shares [SHA: 601877] ended up nearly 1 percent higher at CNY28.63 (USD4).

Tongrun also has mature overseas sales networks and corresponding resources.

Editor: Futura Costaglione