(Yicai Global) Sept. 5 -- Suzhou Dongshan Precision Manufacturing Co. [SHE:002384] will invest CNY171.5 million to acquire a 70% stake in a South Korean communications equipment maker to provide omni-directional integrated support to 5G products centering on the ceramic dielectric business and create new profit drivers for the company.

The listed company purchased the target from nine shareholders, including Kang Nam Gu and Shanghai Zhenghai Juyi Investment Management Center (LLP), taking their 70% stakes in Suzhou RF Top Electronic Communications Co. (SRTEC). The underlying equity was priced at CNY171.5 million.

Upon completion of this transaction, the listed company will hold a 70% share of the target company, the shareholding ratio of Kang Nam Gu, the former largest shareholder, will fall from 40.21% to 24%, with the holding ratios of the remaining shareholders relatively small. 

The ceramic dielectric products of SRTEC, the target of this transaction, are manufactured based on independent research and development, and are recognized by mainstream communications integrators, and bulk supply has kicked off. SRTEC currently enjoys a multitude of quality customer resources such as ZTE, Motorola, and Nokia.