(Yicai Global) June 5 -- Shares of Shanghai's Songz Automobile Air Conditioning surged on the Chinese firm's JPY1.1 billion (USD10.1 million) deal to buy a majority stake in Japanese auto parts maker Keihin's Chinese joint venture.

Songz's stock price [SHE:002454] rose by the daily limit of 10 percent to CNY5.26 (US 70 cents) this morning, the highest intraday price since mid-March.

Keihin will sell a 55 percent stake in Dalian-based Keihin-Grand Ocean Thermal Technology to Songz, the Shanghai-headquartered buyer said in a statement yesterday, without suggesting a reason for the Tokyo-based firm's withdrawal. After the transaction, the target firm will change its name.

Keihin-Grand, which makes automotive air conditioning parts in northeastern and southern China, counts Dongfeng Honda Automobile, SAIC Volkswagen Automotive, FAW-Volkswagen Automobile as some of its major clients.

The addition of Keihin's automotive condenser and evaporator products should improve Songz's production layout and business performance, the statement added.

Editor: Emmi Laine