(Yicai Global) Nov. 19 -- Eaglerise Electric & Electronic (China) plans to pay MYR14 Million (USD3.37 million) to take a 70 percent stake in a Malaysian light-emitting diode device maker to hedge risks from uncertainty flowing from US-China trade relations.

The Foshan, Guangdong province-based LED equipment maker's Hong Kong wholly-owned unit will buy into Selangor, Malaysia-based Deg Industrial Supplies via a direct share buy and purchase additional shares later, the parent said yesterday.

The target company designs and manufactures various lighting LED appliances, the announcement said, but without going into details.

The move seeks to lessen the risks entailed on having all production in China to avert tariffs stemming from trade frictions, as well as more quickly responding to international demand, per the statement.

Eaglerise shares [SHE:002922] closed 1.47 percent up at CNY15.16 (USD2.16) today.

Editor: Ben Armour