(Yicai Global) Aug. 12 -- The stock price of NVC Lighting has surged after US investment firm KKR announced that it will acquire a 70 percent stake in the Chinese lighting fixtures firm for USD794 million, which will spur the latter's business expansion overseas.

NVC's [HKG: 2222] shares climbed 57 percent to HKD1.10 (US 14 cents) this morning, the highest price since October 2016. Its market cap rose to HKD4.8 billion from HKD3 billion (to USD612 million).

KKR will pay CNY4.6 billion (USD651.4 million) in cash and the remainder by issuing shares, the Guangdong province-based company said in a statement yesterday. NVC will retain all the non-lighting as well as international business assets.

NVC will use the proceeds to set up factories in East Asia as well as purchase assets in Europe and the US, said the firm whose sales channels extend to Southeast Asia, Europe, Australia, the Middle East, and South America. In China, NVC has four manufacturing bases and more than 3,800 franchise stores.

New York-headquartered KKR counts China as one of its core markets in Asia Pacific. Since 2007, the company has invested more than USD4.5 billion in China. It has offices in Beijing, Hong Kong and Shanghai.

KKR's [NYSE: KKR] share price fell 0.2 percent to USD25.20 on Aug. 9.

Editor: Emmi Laine