Cathay Financial (TPE:2882) plans to acquire a 45% stake in Greater Changhua SW as part of an investment of up to NT$27.8 billion, according to a Friday Taiwan Exchange filing.

Shares gained 1% in Monday's midday trade.

The investment will be made through its unit, Cathay II Wind Power, alongside Ørsted.

The stake includes ordinary and preferred shares, as well as shareholder loans linked to the offshore wind project.

The deal is aimed at generating long-term stable returns and will be funded through equity.

Deal completion is subject to regulatory approvals, it said.