Zhejiang Hongchang Electrical Technology (SHE:301008) plans to acquire an additional 21% equity stake in Hangzhou Liangzhi Joint Technology for 54.6 million yuan, according to a Thursday disclosure on the Shenzhen bourse.
Liangzhi Joint manufactures and sells electromechanical coupling systems, motors and controllers, bearings, gears, precision reducers, micro motors and other components.
The stake will be bought from three investors.
Following the transaction, the Chinese electrical components manufacturer's stake in Liangzhi Joint will rise to 51% from 30%.
The company's shares fell over 3% at the close.