(Yicai Global) Feb. 3 -- Wandong Medical Technology’s shares soared after home appliances giant Midea Group agreed to invest about CNY2.3 billion (USD355.5 million) for a controlling stake in the Chinese medical equipment supplier.

Wandong Medical [SHA: 600055] surged by the 10 percent daily trading limit today to CNY11.23 (USD1.74), giving it a market value of CNY6 billion (USD929 million). Its shares also hit the upper limit on Feb. 1 and were temporarily suspended yesterday.

Midea will acquire a 24.1 percent stake -- 130 million shares at CNY14.6 each -- from Wu Guangming, the actual controller of the target firm’s controlling shareholder Jiangsu Yuyue Medical Equipment and Supply, Beijing-based Wandong Medical said yesterday.

Foshan-based Midea will have about 29.1 percent of the firm’s voting rights and Midea founder He Xiangjian will become de facto controller, the statement said, adding that the deal still requires regulatory approval.

Founded in 1955, Wandong Medical’s healthcare business covers medical imaging equipment, medical image diagnostic services and X-ray tube production.

Its net profit jumped 62.5 percent to CNY148 million (USD22.9 million) in the nine months ended September from a year earlier on a 15.2 percent rise in revenue to CNY736 million (USD114 million).

Editor: Peter Thomas