(Yicai Global) Sept. 19 -- Ningbo Shuanglin Auto Parts Co. [SHA:300100] plans to spend CNY2.3 billion (USD354 million) to purchase all stock rights in Shuanglin Investment.

The buyer will issue 64.56 million stocks at CNY25.13 (USD3.81) a share and chip in CNY678 million (USD104 million) in cash for the 100-percent stake, it said on Sept. 18. It will also raise a supporting fund of up to CNY739 million.

The target firm is an investment unit currently owned by Shuanglin Group Co., Ninghai Jinshi Private Equity Fund Partnership, Ninghai Jisheng Transmission Technology Co. and Shanghai Huapu Auto Co.

Shuanglin Investment's main businesses are automatic vehicle transmissions, wholesale parts and retail and after-sales services. It guaranteed total net margins from 2017 through 2020 of CNY1.18 billion.

Buying the investment unit will allow Shuanglin Auto Parts to use its transmission technology to enrich its own product line and become more competitive.

Shuanglin Group mostly engages in auto manufacturing, tourism, education and other fields.