Story
Lier Chemical Stock Surges 10% on Acquisition Deal at Major Premium
Summary
Shares of Lier Chemical jumped by the 10% daily limit after CR Double-Crane announced it would acquire a 23.5% stake in the agrochemical firm for RMB 5.656 billion, a price significantly above market expectations.
Shares of Lier Chemical Co Ltd (SZ:002258) surged by the 10% daily limit on Thursday after CR Double-Crane announced its intention to acquire a significant stake in the company at a substantial premium. The stock price climbed to 16.18 CNY, hitting its trading ceiling as investors reacted positively to the news of the high-value transaction.
Acquisition Details
CR Double-Crane will acquire approximately 188 million shares of Lier Chemical, representing a 23.5% equity stake, from the company's current controlling shareholders, Sichuan Jiuyuan Investment Holding Group and Sichuan Huacai Technology. The total value of the deal is RMB 5.656 billion.
Upon completion, CR Double-Crane is set to become Lier Chemical’s largest shareholder, with China Resources Holding becoming the ultimate controller. The transaction is classified as a major asset restructuring, according to public filings.
AdMarket Stunned by Premium Valuation
The market's strong positive reaction was driven by the unexpectedly high acquisition price of RMB 30.07 per share. This figure is nearly 2.4 times the previously disclosed minimum transfer floor price of RMB 12.62 per share, which had anchored investor expectations at a much lower level.
The significant premium is seen as a validation of Lier Chemical's strategic importance as China's largest producer of chloropyridine-based agrochemicals. The stock opened at its limit-up price and, after a brief dip, locked back at the ceiling with buy orders reportedly exceeding 200,000 lots. This performance sharply contrasted with the broader Chinese markets, where the mainland blue-chip index fell 1.3%.
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