ANDRE JUICE plans to acquire control of Ningbo Yongqiang Technology for RMB 600 million to RMB 800 million in cash. The stock surged 61% on the announcement with turnover of HKD 207 million. The deal is at an early stage and remains subject to due diligence and internal approvals.
ANDRE JUICE (02218.HK) surged as much as 61% after announcing plans to acquire control of Ningbo Yongqiang Technology for an estimated RMB 600 million to RMB 800 million in cash, marking its largest acquisition move.
"The project is currently at an early stage of due diligence and negotiations," the company said in a filing, adding that the transaction remains subject to internal approval procedures and there is no certainty it will proceed.
The stock opened 15% higher and hit an intraday peak of HKD 41.14 before last trading at HKD 36.76, with turnover reaching HKD 207 million on 5.7 million shares — more than 10 times the average daily volume. The company will pay a deposit of RMB 45 million under the equity transfer framework agreement. The deal does not constitute a connected transaction and is not expected to trigger a major asset restructuring.
The acquisition would give ANDRE JUICE control of a manufacturing technology company, expanding its operational footprint beyond its core juice business. The total consideration of RMB 600 million to RMB 800 million will be funded through internal resources or self-raised funds, with the company cautioning the deal may not close.
The framework agreement was signed with Ningbo Yongqiang Technology and its controlling shareholder and de facto controller, covering a proposed partial equity acquisition. The exact stake percentage and final terms will be determined through the ongoing due diligence process, the company said. No timeline for completion has been provided, and the deal requires board and shareholder approvals before becoming binding.
ANDRE JUICE shares have gained more than 60% this year, outperforming the Hang Seng Index, which has risen about 10% over the same period. The HKD 207 million in turnover on the announcement day suggests strong investor interest in the acquisition strategy. The company has not disclosed the specific business of Ningbo Yongqiang Technology or how the acquisition would integrate with its existing operations.
The acquisition comes as ANDRE JUICE seeks to diversify its business. Investors will watch for further details as due diligence progresses, with any definitive agreement requiring board and shareholder approvals. If completed, the deal would represent one of the company's largest strategic moves, with the consideration range implying a valuation multiple that investors will scrutinize against comparable transactions in the sector.
The preliminary consideration of RMB 600 million to RMB 800 million represents a significant bet for ANDRE JUICE, which will need to demonstrate it can finance the deal without straining its balance sheet. The company said it would use internal resources or self-raised funds, suggesting it may seek external financing or partners to complete the transaction. Market participants will be watching for any regulatory hurdles, particularly given the cross-industry nature of the acquisition.
This article is for informational purposes only and does not constitute investment advice.
