Chinese leather goods maker explores semiconductor firm buyout for up to $1.2 billion

(Reuters) -Leather goods maker China International Development Corp said on ​Friday it is exploring the acquisition ‌of Lonten Semiconductor Co Ltd for up to HK$9 ‌billion ($1.16 billion).

The company said it has signed an agreement with Lonten’s largest shareholder and chairman Xu Xichang, ⁠who owns a ‌24.81% stake and will engage with the remaining shareholders to ‍facilitate the deal.

China International Development said it expects the proposed transaction to be worth around HK$4.5 ​billion to HK$9 billion, which it ‌will finance through cash, share issuance or a combination of both.

Under the agreement, China International Development has secured the right to assess and review the records of the power ⁠semiconductor devices maker during ​a three-month exclusivity period.

Principally ​engaged in leather products, China International Development is also involved in the ‍automobile segment ⁠and has been seeking to expand its business in the semiconductor industry in China.

(⁠$1 = 7.7860 Hong Kong dollars)

(Reporting ‌by Nichiket Sunil in Bengaluru; ‌Editing by Tasim Zahid)