CALB (HKG:3931) agreed to acquire 87,620,380 A shares in Jiangsu Olive Sensors High-Tech (SHE:300507) from Li Hongqing for 510.8 million yuan, or 5.83 yuan per share, on Tuesday, a same-day Hong Kong bourse filing said.

The shares represent 11% of the auto parts maker Jiangsu Olive Sensors High-Tech's total issued share capital.

The seller has also agreed to give up its voting rights for 155,725,311 A shares he holds in the target company within a period of 60 months.

On the same day, Jiangsu Olive Sensors High-Tech agreed to allot and issue up to 119,482,337 A shares to CALB at 5.63 yuan apiece, or a maximum of 672.7 million yuan in total.

Following completion of the acquisition and subscription of shares, the company will hold roughly 22.61% equity interest in the target.