Huitongda Network Co (HKG:9878) said it has agreed to acquire a 25% equity interest in Jin Tong Ling Technology Group (SHE:300091) for 994.4 million yuan, according to a Sept 5 Hong Kong bourse filing.

Shares of the company were down over 7% in Monday morning trade.

The deal involves subscribing to 710.5 million A-shares at 1.3996 yuan apiece, equivalent to half of the stock's 120-day average trading price.

Huitongda was confirmed as the restructuring investor through a public recruitment process and signed a restructuring investment agreement with Jin Tong Ling and its provisional administrators.

Payment will be funded through internal resources and bank loans, with deposits already placed.

Huitongda said the investment would provide access to scarce restructuring assets at relatively low cost, support its "H+A" capital platform strategy, and extend its industrial layout into high-end manufacturing.