Breton Technology (HKG:1333) agreed to terminate its proposed acquisition of a nearly 6.83% stake in Shanghai Xingmiao Photoelectric Technology, according to a filing with the Hong Kong Stock Exchange.

The decision follows a reassessment of resource allocation as the company's overseas microgrid project enters the construction stage, with Breton prioritizing resources for the project.

The termination is not expected to have a material adverse impact on Breton Technology's existing business, operations, or financial position.

Shares of the firm were down nearly 3% in Wednesday's late-morning trade.