Luxshare Precision Industry's (SHE:002475, HKG:2475) wholly owned Hong Kong subsidiary, Luxshare Hong Kong, has agreed to acquire a 57.0% stake in KFM Kingdom (HKG:3816) for HK$684 million, according to a joint bourse filing.

The shares will be acquired from KIG Real Estate at HK$2 each.

Upon completion, Luxshare Hong Kong will become KFM Kingdom's controlling shareholder and will be required to make an unconditional mandatory cash offer for the remaining shares at HK$2 each.

Separately, KFM Kingdom plans to issue HK$360 million of zero-interest convertible bonds to six subscribers, including HK$252 million to Luxshare Hong Kong.

The bonds are convertible at HK$2 per share and could result in 180 million new shares if fully converted.

KFM Kingdom expects to allocate about 25% of the net proceeds to manufacturing investments in Suzhou and Malaysia, 50% to general working capital, and 25% to repay bank loans.

KFM Kingdom is principally engaged in manufacturing and selling metal stamping products.

It recorded revenue of HK$1.04 billion and profit attributable to owners of HK$81.6 million for the year ended March 2026, the filing said.