Joy Global has entered into a share purchase agreement to buy TJCC Holdings’ stake in International Mining Machinery Holdings for a total value of $585m.

Under the terms of the agreement, Joy Global will purchase 534.8 million shares in IMM at a price of HK$8.5 (US$1.09) per share, which represents about 41% of the issued share capital of IMM.

IMM designs and manufactures underground longwall coal mining equipment and provides aftermarket parts and services through a network of service and warehouse locations in China.

The transaction will be financed with a combination of cash, borrowings or with cash raised through an equity offering.

Joy Global president and CEO Mike Sutherlin said that while major mines in China generally use globally sourced equipment, a larger number of mines rely on local Chinese mining equipment manufacturers.