Chinese device maker TCL offered HKD3.6 billion ($464 million) to take its majority-owned handset unit TCL Communication private, saying low liquidity in the stock has made fund-raising difficult, Reuters reported.

TCL, which has a 65 per cent stake in the unit, offered HKD7.50 a share, or nearly a 35 per cent premium on the stock’s closing price on 3 June, for all the shares it doesn’t control. Shares of TCL Communication jumped 29 per cent yesterday on the Hong Kong Stock Exchange. The shares had been suspended since 6 June.

After TCL takes full ownership, it plans to delist the handset unit, which has struggled recently as global demand for smartphones has weakened and competition has intensified, particularly in China.

IDC recently cut its outlook for smartphone growth, forecasting the market to grow this year by 3.1 per cent to 1.48 billion shipments, a reduction of 2.6 points on its last forecast. That marks a significant slowdown from 10.5 per cent growth in 2015, and from 27.8 per cent in 2014.

TCL Communication’s profit last year fell 5 per cent to HK$1.06 billion ($136 million), on revenue of HKD28.56 billion, which was down 7 per cent. Full year shipments of “handsets and other products” increased 9 per cent to 80 million units, with smart device volumes growing by 7 per cent to 44.5 million units. But the company saw a slowdown in Q4, with total volume decreasing by 1 per cent to 24.7 million units, and smart device volume down 13 per cent to 13.4 million units.