(Yicai  Global) March 19 -- A Californian property unit under investment firm  the Carlyle Group will purchase a small stake in Chinese household  textiles giant Luolai Lifestyle Technology to become its strategic ally. 

CA Fabric Investments will acquire a 10 percent stake in Luolai, or over 75 million stocks, from  Shihezi Zhongbang Stock Investment Management Partnership and  co-founder's son Xue Junteng, with the share price of CNY9.62 (USD1.40)  each, the Shanghai-based target firm said in a statement yesterday. This  should amount to CNY762 million USD113.5 million). 

The  deal will lay a stable foundation for the development of strategic  cooperation and it is conducive to optimizing the target company's  corporate governance structure, the statement added. Fabric will  nominate a member to the board of directors.

The  buyer and its affiliates can purchase up to 20 percent of Luolai's  equity in the future. If the target company's majority shareholder  intends to reduce its shareholding, Fabric may buy or sell its stake  under the same conditions.  

Luolai's stock price [SHE: 002293] has risen nearly 4 percent to CNY11.54 by 13.25 p.m.  

Editor: Emmi Laine