The world's largest footwear manufacturer, Yue Yuen Industrial (Holdings), on Tuesday agreed to acquire dozens of shoe-making businesses from its parent company for $427 million.

The Hong-Kong based company, which makes shoes for major brands such as Nike and Reebok, said in a statement it will fund the deal through the issue of 60 million new shares at $3.11 and $240.2 m in cash.

Trading in Yue Yuen's shares was suspended on Monday ahead of a statement on a transaction involving the issue of new shares. In June, the company posted a first half net profit of $110.2 million.