China International Development (HKG:0264) entered into a non-legally binding memorandum of understanding to acquire up to 100% equity interest in Lonten Semiconductor from its shareholders, a Nov. 21 Hong Kong bourse filing said.

Shares of the leather company were up 4% in Monday afternoon trading.

The parties expect a consideration of between HK$4.5 billion and HK$9 billion for the deal. The MoU has a three-month exclusivity period that can be extended.

The potential acquisition of the target firm, a provider of power semiconductor devices and system solutions, is part of the company's business expansion strategy.