PT International Development (HKG:0372) said its unit has signed a non-binding memorandum of understanding with Guangxi Linghang International Logistics for a potential capital injection of about 282 million yuan, according to a Tuesday Hong Kong bourse filing.

Shares of the firm were up 9% in Wednesday morning trade.

The deal involves Guangxi Guangming Warehouse Storage, a non-wholly owned subsidiary of the company in mainland China, where Guangxi Linghang, a unit of state-owned Guangxi Pilot Free Trade Zone Qinzhou Port Area Development and Investment Group, would subscribe for a 31.97% equity stake after dilution.

Proceeds from the potential subscription are intended to repay outstanding debts totaling around 233 million yuan, including loans owed to Lianwei (Shanghai) Financial Leasing, China Communications First Navigation Bureau Fifth Engineering, and Guilin Bank's Qinzhou branch.

Upon completion, PT International's indirect holding in Guangming would be reduced to about 51%, and the subsidiary would remain non-wholly owned.