(Yicai Global) May 11 -- Dongxu Optoelectronic Technology Co.'s [SHE:000413] wholly-owned subsidiary, Shenzhen Xuhui Investment Holdings Ltd., is set to become the largest shareholder in a company that produces graphene-based products by taking part in the firm's capital raising and share-offering program.
Dongxu Optoelectronic said yesterday that Shenzhen Xuhui and the Taizhou Dongxu Graphene Industry Investment Fund Management Center (Limited Partnership) have entered into an agreement with Mingshuo (Beijing) Electronic Technology Co. shareholders, under which the Taizhou Graphene Industry Fund will acquire a stake in the target group for CNY23 million (USD3.3 million) and Shenzhen Xuhui will inject CNY57.1 million into Mingshuo Electronic Technology.
After the deal's completion, Shenzhen Xuhui and the Taizhou Graphene Industry Fund will have 36.4-percent and 14.6-percent stakes, respectively, Dongxu Optoelectronic said.
Dongxu Optoelectronic said that its holding subsidiary, Beijing Dongxu Huaqing Investment Co., is Taizhou Dongxu Graphene Industry Investment Fund Management Center's fund manager.
Mingshuo Electronic Technology provides high-power light-emitting diode equipment and integrated lighting solutions, and the production of graphene composite heat dispersion materials is its core technology, Dongxu Optoelectronic said. Mingshuo Electronic Technology's lighting products are already being industrialized, Dongxu Optoelectronic said.
Dongxu Optoelectronic said that the acquisition will help it diversify its graphene-product portfolio and produce synergies between its existing graphene business, its future new-energy vehicle business, and the target company's business.