(Yicai Global) Dec. 31 -- Fosun International has won the bidding for a 70 percent stake in distiller Shede Spirits, its second such acquisition this year, demonstrating the Chinese pharma-to-jewelry conglomerate's resolve to expand its footprint in the baijiu, a type of rice wine, sector.

Unit Shanghai Yuyuan Tourist Mart Group prevailed over two other contenders during 27 rounds of bidding today with an offer of CNY4.53 billion (USD692.6 million), according to the website of a court in Suining, southwestern Sichuan province.

This was well below the anticipated purchase price of CNY6 billion. As a result, Shede’s stock [SHA:600702] fell by the daily maximum of 5 percent to CNY85.44 (USD13) while Shanghai Yuyuan’s share price [SHA:600655] hit the exchange-imposed limit of 10 percent, closing at CNY8.89 (USD1.40).

The move indicates that Fosun is firmly committed to the baijiu sector, industry analyst Cai Xuefei told Yicai Global. The Shanghai-based firm has made many attempts to enter the field. In 2015, it tried to buy the 70 percent stake in Suining-based Shede when it was last up for grabs but failed. In August, it bought a 30 percent stake in Jinhui Liquor, less well-known than Shede.

Fosun will leverage Shede’s status as a well-known national brand to strengthen its presence in the industry, Cai said.

Shede’s assets were put up for auction by the Suining government after its controlling shareholder Hong Kong-based SkyOcean Group Holdings, which paid CNY3.8 billion (USD581 million) in 2015 for the 70 percent stake, was found to have stripped the firm of cash assets totaling CNY4 billion, of which CNY475 million (USD72.6 million) has not yet been recovered, Shede said on Sept. 24.

Editors: Tang Shihua, Kim Taylor