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(Yicai Global) Dec. 27 -- Sanan Optoelectronics, China's largest light-emitting diode chip maker, will purchase the UK's Wipac, a troubled automotive lighting supplier to Bentley Motors, Ferrari and Porsche, for GBP10.5 million (USD13.6 million).
Sanan will also put in GBP19 million to buy Wipac's equipment and to replenish its working capital, the Xiamen-based firm said in a statement yesterday.
The target firm's parent Carclo cannot support its business expansion, which prompted Sanan to leverage Wipac to boost its global influence and competitiveness, it said. Sanan will support the Buckingham-based company financially and keep its equity at least until the end of 2030, it has promised some key clients.
Founded in 1941, Wipac has been dragging its parent's financial performance down in recent years.
Sanan's shares [SHA: 600703] fell by 2.3 percent to CNY19.05 (USD2.70) this afternoon.
Editor: Emmi Laine