(Yicai) Aug. 6 -- Shares of Lianchuang Optoelectronic Technology rose after the Chinese optoelectronic device maker said it plans to increase its stake in Lianovation Superconductor and gain control of the Chinese high-temperature superconducting components manufacturer.

Lianchuang [SHA: 600363] closed 4.9 percent up at CNY27.29 (USD3.82) in Shanghai today, after gaining as much as 7.7 percent in morning trading.

Lianchuang will spend CNY357 million (USD49.9 million) to buy an 8 percent stake in Lianovation from its largest shareholder Jiangxi Electronic Group and CNY134 million to acquire a 3 percent stake in Lianovation from members of its core technical and management teams, the Jiangxi province-based buyer announced yesterday.

After the transactions are completed, Lianchuang will hike its stake in Lianovation to 51 percent from 40 percent. Jiangxi Electronic’s shareholding ratio will fall to 33 percent and that of the core teams to 12.5 percent.

The purchase price was agreed based on a 20 percent discount to Lianovation’s appraised value of CNY5.6 billion (USD783.5 million), Lianchuang noted.

Lianovation is a supplier of high-end electric equipment and technology solutions based on high-temperature superconducting magnets based in Nanchang, Jiangxi province. It has strong competitive advantages in terms of patent technologies and their commercialization.

For example, in April, Lianovation completed the preparation testing of D-type high-temperature superconducting magnets, which are expected to become a key component of controllable nuclear fusion devices.

The high-temperature superconducting products developed by Lianovation have already entered the primary stage of commercialization and promotion, Lianchuang said, adding that the purchase will help the company accelerate the commercialization of its related products and enhance the listed parent's sustainable profitability.

Editor: Futura Costaglione