(Yicai) Jan. 4 -- Shares of Ccoop Group, a department store operator previously owned by bankrupt HNA Group, surged by the daily limit for the second straight day after a state cooperative became its largest shareholder.

Ccoop's stock price [SHE: 000564] closed 5.3 percent higher at CNY1.58 (22 US cents) in Shenzhen today, the same increase as yesterday. Its daily trading limit was cut to 5 percent from 10 percent due to the special circumstances.

Three investors controlled by the All China Federation of Supply and Marketing Cooperatives inked agreements with Ccoop to buy 2.6 billion newly issued stock worth CNY1.3 billion (USD181.7 million) in cash, the Xi’an-based target company announced yesterday.

The ACFSMC is a commercial and trade organization directly led by the State Council, China’s cabinet, which aims to boost the country’s rural economy and promote farm produce.

Ccoop’s three new investors will also take the lead in attracting more investors to the company, arranging for them to buy at least 1.8 billion new shares for no less than CNY0.99 (14 US cents) apiece, it added. 

After the transaction, the ACFSMC will won 21.3 percent of Ccoop, becoming its controlling shareholder. It previously held a 7.7 percent stake via its affiliate New Cooperation Joint-Stock Trade Chain and other associated parties. 

After years of aggressive expansion, HNA began a bankruptcy restructuring in 2021. Liaoning Fangda Group Industrial acquired its core aviation business, Hainan Airlines, while Hainan Development Holdings bought its airport assets. The assets of more than 100 units were included in a creditors' trust to repay HNA's debts tallying as much as CNY1 trillion (USD140 billion). 

Ccoop still faces challenges despite the takeover. It logged a net loss of CNY379 million (USD53.2 million) in the first three quarters of last year, compared with a profit of CNY266 million a year ago. Its revenue climbed 2 percent to CNY1 billion.

Editors: Dou Shicong, Emmi Laine