Robot manufacturer Shenzhen UBTECH Robotics Co., Ltd. (9880.HK) announced on Wednesday that it plans to acquire a total of 43% equity in Zhejiang Fenglong Electric Co., Ltd. (002931.SZ), which is listed on the Shenzhen Stock Exchange, for a total consideration of approximately 1.665 billion yuan (237 million USD).

The transaction will be conducted in two phases. UBTECH will first acquire 29.99% equity in Fenglong at a price of 17.72 yuan per share, and then initiate a tender offer for an additional 13.02% equity, with a discount of about 10% compared to the price before the suspension. Upon completion of the acquisition, Fenglong will become UBTECH's first A-share listed subsidiary, and its financial performance will be consolidated into UBTECH's accounts. The board of directors of Fenglong will be restructured, with six of the seven directors to be appointed by UBTECH, resulting in a change of control and actual controller.

Founded in 2003, Fenglong primarily engages in the business of horticultural machinery, hydraulic control systems, and automotive components, and has successfully turned a profit in recent years. UBTECH stated that the acquisition will help strengthen its supply chain integration, cost control, and mass production capabilities, further consolidating its competitive position in the humanoid robot industry.

Fenglong was suspended from trading on December 18, and after resuming trading on Thursday, its stock price rose by 10.01%, closing at 21.65 yuan, with a market capitalization increasing to approximately 4.7 billion yuan