(Yicai Global) June 4 -- China's Lingyi iTech will buy all shares in Salcomp for EUR88 million (USD99 million) cash, part of which will be used to pay the Finnish electronics components maker's bank debts.

Lingyi's overseas unit penned an equity purchase agreement with Salcomp's shareholders yesterday, the Shenzhen-based magnetic materials manufacturer said in a statement. The payable debts will be confirmed based on Salcomp's book debt balance.

The move will help Lingyi to expand its business to the downstream industrial chain, improve its global positioning of production bases and further develop overseas markets.

Set up in 1973, Salcomp is headquartered in Salo and focuses on making chargers and adapters for electronic products including smartphones, tablet computers and intelligent household devices. Salcomp has plants in China, Brazil and India, and posted a net loss of EUR8 million last year as well as EUR530.8 million in operating revenue.

JPMF and Lingyi merged to form Lingyi iTech last year. The firm has plants in over 10 cities nationwide and employs more than 50,000 people.