(Yicai Global) Feb. 27 -- Yoke Technology's stock price jumped after the Chinese chemicals firm said that it will acquire South Korean LG Chem's photoresist business for KRW58 billion (USD47.7 million) to meet major client LG Display's demand.

Shares of Yoke [SHE:002409] climbed 6 percent to CNY43.61 (USD6.20) this afternoon after reaching an all-time high of CNY45.96 on Feb. 24. 

Yoke's unit has penned a business transfer agreement with LG Chem to purchase the Seoul-headquartered company's assets related to its factory in Cheongju, including inventory, intellectual property rights, and receivables, the Jiangsu province-based buyer said in a statement yesterday. Thereby, the South Korean chemicals giant will exit the business of providing photoresist materials for displays.

Chinese flat screen makers have boosted capacity in recent years but the domestic photoresist market still relies on imports, according to Yoke.

Yoke will also invest about CNY200 million (USD28.5 million) to build a new plant in South Korea, it said. The company is looking to become one of the world's major suppliers of display photoresists, as well as a long-term supplier to Seoul-based panel maker LG Display, it added.

Editor: Emmi Laine