(Yicai Global) Sept. 4 -- Ningbo Jifeng Auto Parts will invest CNY3.12 billion (USD466 million) via cash and shares to gain indirect control of German passenger vehicle interior product supplier Grammer to augment Jifeng's domestic business.

This is the latest move to infuse 84.23 percent shares of Grammer into Jifeng after a German branch of Ningbo Jiye Investment, a cross-border acquisition platform controlled by Jifeng's actual controller, confirmed the tender offer for these shares on Aug. 28, Jifeng announced yesterday.

Grammer, based in Amberg in the southern state of Bavaria, is a German-listed firm specialized in research and development, production and sale of headrests, seat armrests and central control systems for passenger vehicles and seating systems for commercial vehicles, Jifeng's announcement stated.

All parties involved agree that the transaction price for 100 percent of shares of Ningbo Jiye Investment is CNY3.12 billion, of which Jifeng will pay CNY70 million (USD10.3 million) in cash and the remaining CNY3.055 billion by issuing 299,803,727 shares to Ningbo Jiye Investment's investors for CNY10.20 (USD1.52) per share, according to the announcement.

This deal will result in major asset restructuring but no change in the company's actual controller, and Jifeng will indirectly hold 84.23 percent of Grammer's stock by taking a 100 percent stake in Ningbo Jiye Investment when the transaction concludes, the announcement adds.

Grammer will also make a cash offer for 100 percent shares of Ohio, US-based auto parts maker Toledo Molding & Die when the tender offer concludes to incorporate it as a key unit, per the announcement.

Jifeng will break into Grammer's existing business via this deal to secure more excellent auto original equipment makers as its key clients. This will help to popularize it, win market influence and form a benign interaction between its domestic and overseas businesses while driving the company to become a leading supplier of auto interior products the world over, the announcement added.

Editor: Ben Armour