Top Bright (TPE:8499) approved the acquisition of a 70% stake in Suzhou Dwell New Materials, through its unit Longyoung Electronics, for 770 million yuan.
Shares jumped about 10% in recent trade on Friday.
The deal will be paid in two tranches and is expected to close by mid-September, according to a Thursday Taiwan Exchange filing.
The acquisition aims to strengthen Longyoung Electronics' R&D and market position in polymer materials.
The company will fund the deal from internal cash and bank loans, it said.
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