Fulin Precision (SHE:300432) agreed to decrease its stake in a subsidiary, while Contemporary Amperex Technology (SHE:300750, HKG:3750) or CATL will raise its stake through a capital raise, according to a Wednesday filing on the Shenzhen bourse.
The automotive engine manufacturer will subscribe for 406.5 million yuan worth of newly registered capital in Jiangxi Shenghua New Materials by converting 500 million yuan of its claims against Shenghua New Materials.
CATL will subscribe for 607.4 million yuan worth of capital in Shenghua New Materials for 747.1 million yuan.
After the transaction, Shenghua New Materials' registered capital will increase to 2.87 billion yuan from 1.81 billion yuan. Fulin Precision's stake in the subsidiary will be reduced to 64.37% from 79.57%, while CATL's stake will increase to 33.0% from 18.74%.
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