China Yuchai International, a subsidiary of mainboard-listed Hong Leong Asia, has acquired 83,918,495 shares of Nanyue Diankong (Hengyang) Industrial Technology Company (NYDK), approximately RMB176.2 million ($32.48 million) in cash.
The company, which is listed on the NYSE, is now the second largest shareholder of NYDK. NYDK is a national high-tech and industry leader specialising in fuel injection systems including common rail systems, unit pumps and mechanical pumps.
Yuchai has also entered into a concerted action agreement with Hunan Hengyang Auto Parts Factory, the largest shareholder of NYDK.
This agreement will give Yuchai operational control over NYDK, including, among other things, the right to nominate six out of nine directors on NYDK's board of directors and designate its general manager.
The NYDK acquisition enhances Yuchai's supply chain in key components used in its powertrain solutions, says the group.
Shares in Hong Leong Asia closed 4 cents higher or 1.527% up at $2.66 on Jan 12.
