(Yicai) Feb. 17 -- Step Electric’s shares surged by their daily trading limit after it said Haier Group will take a controlling stake in the Chinese maker of industrial robots for about CNY2.5 billion (USD345 million).

Step Electric [SHA: 002527] closed up 10 percent at CNY11.17 (USD1.54) a share in Shanghai today. Trading in the stock had been halted on Feb. 1, pending the announcement.

Haier will buy 66.3 million shares of Step Electric from its major shareholders, founder Ji Defa, his wife Liu Liping, and daughter Ji Yi, for CNY19.61 (USD2.71) each, the Shanghai-based target company said yesterday. It will also buy 152.5 million new shares issued by Step Electric at CNY7.99 apiece.

The deal will give Haier a 26.8 percent stake in Step Electric, making the Qingdao-based consumer electronics producer its largest shareholder.

Ji Yi, 48, chairs Step Electric, while her 74-year-old father is a director. Along with Liu Liping, they will still own 19 percent of Step Electric after the deal, but their voting rights will be transferred to Haier.

The CNY1.2 billion (USD165.6 million) raised from the new shares sale will be used to replenish liquidity, helping Step Electric to boost its research and development as well as drive growth in its core business of industrial control automation, the company noted.

Founded in 1995, Step Electric started with elevator control systems and later expanded into the field of industrial automation and robots. It posted net losses of CNY1.1 billion and CNY379 million in 2022 and 2023, respectively, and had an estimated loss of between CNY185 million and CNY367 million last year.

Haier has been expanding its investment footprint in recent years, including acquiring 20 percent of Shanghai Raas Blood Products for CNY12.5 billion (USD1.7 billion) last year. After taking over Step Electric, Haier will control seven listed firms.

Editor: Tom Litting