Hong Kong-listed UBTech Robotics has agreed to pay nearly US$237 million in cash for a 43% stake in Zhejiang Fenglong to secure key manufacturing capacity as it scales up humanoid robot production.
Chinese humanoid robot maker UBTech Robotics is moving to lock down key manufacturing capacity by agreeing to pay nearly 1.7 billion yuan (US$237 million) in cash for control of Shenzhen-listed mechanical component maker Zhejiang Fenglong as it pushes to scale up humanoid robot production.
The two-stage deal, detailed in a filing to the Hong Kong stock exchange on Wednesday, begins with UBTech acquiring a 29.99% stake from existing shareholders for 1.16 billion yuan. This will be followed by a voluntary partial offer to buy a further 13.02% for about 504 million yuan. The offer prices Fenglong’s shares at 17.72 yuan each, a 10% discount to the company’s December 17 close of 19.68 yuan, before trading was halted.
After the first phase, UBTech will gain the right to nominate six of Fenglong’s seven board directors. Once both stages are completed, the Hong Kong-listed robotics firm expects to hold at least a 43% stake in the company.
Fenglong manufactures engines for garden tools, automotive components and machine pressure-control systems. Its shares resumed trading on Thursday and immediately hit the 10% daily limit, opening at 21.65 yuan.
The deal highlights how China’s robotics firms are increasingly eyeing A-share acquisitions to tighten the humanoid robot supply chain.
