(Yicai Global) July 26 -- Chinese consumer electronics component maker Lingyi Technology (Shenzhen) Ltd. will list on the A-share market via a backdoor deal using a Shenzhen-listed shell called JPMF Guangdong Co. [SHE:002600] in a deal worth USD3 billion (CNY21 billion).

JPMF said yesterday that it will issue some 4,429 million shares at CNY4.68 each to Lingsheng Investment (Shenzhen) Ltd., Shenzhen Lingshang Investment Partnership and Shenzhen Lingjie Investment Partnership) and will buy all Lingyi Technology for CNY21 billion (USD3 billion).

Upon completion of the hermit-crab deal, Lingsheng Investment will become JPMF's controlling shareholder, Zeng Fangqin, legal representative of Lingyi Technology, will become its actual controller, and Lingyi Technology will go public via a reverse merger.

Lingyi Technology is a consumer electronics component maker with products widely used in smartphones and smart wearables. Its major clients include Apple Inc. [NASDAQ:AAPL], Huawei Technologies Co., Oppo Electronics Corp., Vivo Electronics Corp. and other electronic goods brands. It thus boasts quality client resources.

Since its original principal business of magnetic materials has been growing slowly, JPMF has made inroads into the smartphone component sector via mergers, acquisitions and restructuring in recent years, the company said. The deal will make Lingyi Technology a JPMF subsidiary, and enable the two companies to achieve synergy in their consumer electronics component business and help improve JPMF's profitability.