ST Tianlong, a company that specializes in the manufacturing and sales of mid and small-sized LED back lighting products, has announced that Yaogui Group has spent RMB 2bn to take over it at 5.25 yuan per stock, up by 16% than the closing price before the trade suspension, which has been announced to continue by ST Tianlong.

Founded in December 2002 with a registered capital of RMB 90 m, Yaogui Group has branches and subsidiaries with operations including automotive component manufacturing, automotive sales services, financial investment, tourism, hotel management and property services etc.

Analysts say St Tianlong’s plan for the big event is very likely to be issuing asset purchase or replacement that Yaogui Group will probably add an automotive segment rather than real estate, the reorganization of which can hardly be approved by China Securities and Exchange Committee.