(Yicai Global) Aug. 2 -- Huadong Heavy Machinery Co. [SHE:002685] will invest USD442.5 million (CNY2.95 billion) to acquire 100 percent of  Guangdong Harvest Star Technology Co. [NEEQ: 838016]  in a bid to enter the computer numerical control (CNC) machine tool industry.

The company, based in Wuxi in China's southeastern Jiangsu province, will finance the deal price by issuing a CNY2.124 billion share offering and pay CNY826 million in cash obtained by issuing shares via a private placement to fewer than 10 designated investors, it advised.

Huadong Heavy Machinery currently mainly engages in research and development, production, sales and installation of container handling equipment. It will embark into high-end equipment manufacturing upon acquiring Harvest Star, it said.

With an annual capacity of more than 10,000 units, Harvest Star is southern China's largest CNC machine tool manufacturer, public information shows.