OM (KLSE:OMH) unit OM Materials (S) will sell a 60% stake in OM Materials (Qinzhou) to Shaanxi Sinian Metal & Mining for about 120 million yuan, according to a Wednesday Malaysian bourse filing.
Shares gained over 1% in Thursday's midday trade.
The development came after an earlier deal with Beijing Kunpeng Hongsheng Metal fell through.
OM Materials (S) will retain 40% stake in the target company, and expects the deal to close by year-end.
Proceeds will be used to fund working capital, it said.
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