(Yicai Global) Aug. 2 -- Chinese electrical equipment manufacturer Wuxi SAHAT Electric Technology Co. [SHA: 603016] (SAHAT) will spend USD642 million (CNY4.32 billion) to acquire a high-speed train brake pad manufacturer to expand its main business to the rapidly-developing high-speed rail and rail transit field.

SAHAT, which now mainly makes electrical device breakers, will purchase 100 percent of the equity in Beijing Tianyishangjia New Material Corp. from its shareholders, paying CNY250 million in cash and CNY4.07 billion in shares issued.

The company will raise the cash and intermediary expenses in this deal via a private placement, with residual funds going to research and develop foundation brake materials for high-speed trains, SAHAT said.

Tianyishangjia New Material Corp., Ltd. is a leading rail transit brake pad manufacturer in China. Its clients comprise 15 railway bureaus under the umbrella of China Railway Corp.