(Yicai Global) Jan. 27 -- Shares of Exciton Technology jumped to a more than three-month high after the Chinese optical film supplier said that tech giant Xiaomi will invest CNY231 million (USD35.8 million) in it.

Exciton's stock price [SHE: 300566] gained as much as 14.7 percent today, the highest since October 2020. In the afternoon, the shares were 10 percent up at CNY35.35 (USD5.50).

Xiaomi's Wuhan-based unit will buy almost 7.8 million shares of the display film supplier to have a 5 percent stake in total after the transfer, the Ningbo-based target firm said in a statement yesterday.

The handset maker's bid was CNY29.73 per share, a discount of about 7.5 percent in comparison to Exciton's closing price yesterday.

The deal introduces strategic investors for Exciton, according to the announcement. Beijing-based Xiaomi has not issued an official statement about the purchase so far.

Established in 2007, Exciton makes optical films that are mainly used in displays that can detect and control light, as well as light-emitting diode lighting, according to the company's website.

Editor: Emmi Laine