Shenzhen LK, a non-wholly-owned firm of Hong Kong-listed die-casting machine manufacturer LK Technology Holding, has entered an agreement with investors to receive 730 million yuan ($102.9 million) in cash to hike its registered capital.
LK Technology, which held around 90.11% stake at Shenzhen LK before the completion of the capital injection, said the investment will help the subsidiary expand its working capital, according to a filing dated Tuesday.
The investment has roped in state-affiliated investors including Industrial Machinery Industry Investment Fund, an industrial machinery industry-focused investment fund managed by state-owned firm Guoqi Yuanhe Private Equity Fund Management; and CICC-SAIC Emerging Industry Fund, which is managed by CICC Capital, per the filing.
Industrial Machinery Industry Investment Fund has planned to inject around 333.3 million yuan ($47 million), while the CICC-SAIC Emerging Industry Fund is slated to invest 142.9 million yuan ($20.1 million).
Other local investors participating in the capital injection include Shenzhen Pengyuan, Shenzhen Cornerstone SME, and Yantai Huijia.
Upon completion of the transaction and the capital increase by the Employee Stock Ownership Platforms, the new investors will hold a combined 5.91% stake, while LK Technology will account for 84.78% of the firm’s equity interest.
LK Technology, which also engages in the plastic injection moulding machine and the computerised numerical controlled (CNC) machining businesses, plans to transfer all of the firm’s die-casting machine business to Shenzhen LK and its subsidiaries upon deal completion.
The investment comes almost two months after Future Industry Investment Fund II (FIIF), a fund managed by CS Capital, completed its investment of around 1.2 billion yuan ($169.2 million) in Shenzhen LK, of which around 54.7 million yuan ($7.7 million) will be accounted as paid-in registered capital.
Before the capital injection of the Employee Stock Ownership platform, FIIF held a total of 9.89% equity interest in Shenzhen LK, per a regulatory filing.