Zhongshen Jianye (HKG:2503) said it has agreed to acquire Huajian Development for HK$213.6 million, to be settled through the issue of about 403 million new shares at HK$0.53 each, according to a Thursday Hong Kong bourse filing.

Shares of the firm were up nearly 2% in Friday mid-day trade.

The acquisition involves the purchase of 67.1%, 28.8%, and 4.1% stakes from three sellers, respectively.

Upon completion, Huajian Development will become a wholly owned subsidiary, with its financial results consolidated into Zhongshen Jianye's accounts.

The issue price represents a 7% discount to the company's closing price on the date of the agreement, while the consideration shares will comprise about 35.2% of the enlarged share capital.

The company said the deal, which remains subject to shareholder approval and regulatory clearance, will enable Zhongshen Jianye to expand into construction supervision.