China's Fujian Grand Chip Investment Fund (FGC) has made a takeover offer to the German semiconductor equipment maker Aixtron for 4.92 trillion yuan ($752 million), the two firms announced on Monday.

FGC, which is owned by Zhendong Liu, revealed on Monday that it plans to offer 44 yuan ($6.72) per share to buy Aixtron, which represents a 51 percent premium over the German chip maker's three-month volume-weighted average share price.

Like Us on Facebook

"With FGC we have found a partner that will provide local market insights to support our business objectives in Asia," Kim Schindelhauer, Aixtron's supervisory board said. The company's stock climbed 20 percent during the pre-market trade at brokerage Lang & Schwarz after news about the offer broke, Reuters reported.

Following the acquisition, Aixtron's headquarters will remain in Herzongenrath, Germany while its three tech hubs in Germany, Britain's Cambridge and Sunnyvale in California, USA, will be maintained. Also, both its chief executive Martin Goetzeler and chief operating officer Bernd Schulte will retain their posts.

Cost and staff cutting were not part of the deal, and Aixtron's business strategy will also remain as is after the takeover.

Aixtron is the latest hi-tech firm acquired by a Chinese compny as the country's economy aims to shift from a low-cost factory haven into a cutting-edge industrial hub.

The FCG will give about 1.7 billion yuan ($260 million) of equity financing, and the other remaining funds will come from debt facilities.

Aixtron primarily makes metal organic vapour deposition (MOCVD) tools, which are very important in creating LED lights. The company's stock lost over half of its market value last year after Sanan Optoelectronics cancelled an order.

"In our view, it makes sense for FGC to acquire Aixtron for its MOCVD and compound semiconductor technology, as ... Sanan is located in the same province as FCG and is backed by local government, Tammy Qiu, an analyst from Berenberg said.

TagsFujian Grand Chip, Aixtron, chips, Sanan Optoelectronics