(Yicai Global) Aug. 20 -- A leading Chinese design and manufacture services provider aims to gain a foothold in the EU market through a takeover deal which includes a production base in Poland.

A unit of Universal Scientific Industrial will take a 60 percent stake in electronic manufacturing services firm Chung Hong Electronics Poland for CNY78 million (USD11.3 million) through an equity transfer, the Shanghai-based company said in a statement.

Under the deal, the USI subsidiary will have the right to buy the remaining 40 percent stake at a price equal to 10 times the target firm's after-tax net profit within six months of the release of its 2020 audited financial statements.

The target company, a subsidiary of Chunghong Holdings, is based in Wrocław, Poland, and focuses on businesses such as the manufacture and sales of mainboard and adapter cards.

Universal Scientific Industrial Shanghai was set up by Taiwan-listed Universal Scientific Industrial in 2003. The company acts as a joint design manufacturer and original design manufacturer of high-end electronic products in fields such as information, communication and consumer electronics as well as automotive electronics. The firm has set up production bases in Shanghai, Kunshan, Shenzhen, Taiwan and Mexico.

Editor: William Clegg