(Yicai) March 23 -- Shares of China's Yuneng Holdings surged more than 8 percent intraday after the power supplier disclosed details of its plan to invest CNY1.1 billion (USD159.2 million) in a joint acquisition of a controlling stake in a large data center operator.

Yuneng [SHE: 001896] closed up 6.5 percent at CNY16.21 (USD2.40) today. Since first disclosing its acquisition intention in early February, its stock price has almost tripled and is now near its highest level since November 2015. Major stock indexes declined overall amid uncertainties stemming from tensions in the Middle East today, with the Shenzhen Component Index ending down 3.8 percent.

Zhengzhou-based Yuneng said after the previous trading day that it will jointly participate in the capital increase of Xiantian Computing Power Henan Technology with its controlling shareholder, Henan Investment Group. After the transaction is completed, Henan Investment Group will hold a 57.7 percent stake, and Yuneng will own the remaining 42.3 percent.

Xiantian Computing Power plans to jointly invest CNY9.4 billion with external investors to acquire a 91.2 percent stake in Zhengzhou-based data center operator Heying Data. After the deal is completed, Xiantian Computing Power will hold no less than a 55 percent stake in the target company, according to the announcement.

Heying operates ultra-large-scale third-party data centers in Hebei province. Its main revenue comes from providing customized data center facilities as well as server hosting and maintenance services. The company has 36 branches in North China’s Hebei province.

From January to October last year, Heying reported operating revenue of CNY1.4 billion and net profit of CNY96.9 million (USD14.1 million). Its net profit still has room to grow as server deployment remains in an expansion phase.

Data center operators are high-quality customers for power companies, Yuneng said, noting that the investment will help promote efficient and coordinated development between its core power generation business and its load-side businesses.

Editor: Emmi Laine