The investment arm of banking firm Lazard Group has agreed to buy a 20 per cent stake in audio-electronics and motorcycle-engine maker Ngai Lik Industrial Holdings, for $290 million. Lazard Asia Fund will acquire 158.44 million shares in the company from Goodchamp Holdings, through Prismatine International, a wholly-owned subsidiary, under the terms of the agreement announced yesterday. The price of $1.83 per share represented a 23.75 per cent discount on the share's close yesterday of $2.40. It also represented a 61.74 per cent premium on the company's 70 cent net-asset value. Upon completion of the transaction, Goodchamp's holding in Ngai Lik Industrial will be cut to 35 per cent from 55 per cent. Ngai Lik chairman Lam Man-chan, whose family controls Goodchamp, said no new shares would be issued for the acquisition because the company did not want 'any dilution effect' on shareholders. Patrick Cheung Din-youn, chief executive of Lazard Asia Fund, said the company was interested in Ngai Lik because of its strong growth in the past five years and the prospects of its digital products. 'Consistent to our fund's strategy, this will be viewed as a long-term investment,' Mr Cheung said. He said Lazard Asia Fund would set up executive and financial committees to help Ngai Lik expand into other markets. The financial committee would also advise on the proposed spin-off and listing of its motorcycle-engine division, Mr Cheung said. The listing on Hong Kong's main board was originally scheduled to take place in the second half of this year, according to Andrew Hui King-chun, the company's executive director. 'We are rethinking which market is the best place for the spin-off,' Mr Hui said. The acquisition of the Ngai Lik stake is the third major investment in Hong Kong by Lazard Asia Fund. In April, the fund acquired a 50.04 per cent stake in Sing Tao Holdings from former chairman Sally Aw Sian. It also acquired a 20 per cent stake in Distacom Communications, which has a 60 per cent holding in telecommunications firm Sunday.