Shares in Tsingtao Brewery, the nation's second-largest beer maker by market share, rose 9.9 per cent yesterday to HK$32.20 after it announced a connected transaction.
The company said on Thursday it would take over for 171 million yuan a 23.9 per cent stake in Tsingtao Brewery Xian Hans (Group) from its subsidiary, Xian Industrial Assets Operations.
The acquisition is expected to strengthen the Shandong-based brewery's foothold in the central region, where the beer market is most competitive.
Mainland breweries have been taking the approach of buying small production plants on the cheap to enlarge their asset base.
That also would help extend their distribution network across different provinces.
Tsingtao said in its statement the acquisition would simplify the group's shareholding structure and improve operations. The share price of the company, a Beijing Olympics sponsor, has climbed more than 14 per cent this week.