Luxshare buys 57% of KFM Kinde for $87.2M to expand manufacturing
What's the deal? Luxshare Precision IndustryDealroom has a profile for this one. Try Dealroom → is acquiring a 57.0% controlling stake in Hong Kong-listed KFM KindeDealroom has a profile for this one. Try Dealroom → for US$82.7M. The purchase, via Luxshare's wholly owned Hong Kong subsidiary, covers 342 million shares at US$0.24 each, bought from controlling shareholder KIG Real Estate.
What's the structure? As required by rules, Hong Kong LuxshareDealroom has a profile for this one. Try Dealroom → must make an unconditional mandatory cash offer for remaining shares at the same US$0.24 per share. That price sits well below KFM Kinde's US$0.55 close on September 11, 2026.
Why now? KFM Kinde suspended trading on September 14, 2026, published the joint acquisition announcement on September 30, and resumed trading on October 2.
What's the endgame? Alongside the deal, KFM Kinde is issuing US$43.5M in convertible bonds, with a conversion price of US$0.24 — a roughly 55.9% discount to the last trading-day close of US$0.55. The company plans to use about 25% of net proceeds to expand manufacturing in Suzhou, China, and Malaysia; about 50% for general working capital; and about 25% to repay bank loans.
The signal: Luxshare, a major contract manufacturer, is extending its reach through control of a listed supplier and fresh capital earmarked for factory expansion. The move points to continued consolidation across Asia's electronics manufacturing supply chain.
Read more: sohu.com
Image credit: Robert Scoble
