(Yicai) Nov. 12 -- Shares of Teamgene Technology plunged after the leading Chinese supplier of pig feed said it has terminated its plan to acquire six US-backed pig farms in China's eastern Shandong province and a Shanghai-based pig breeding technology services and consulting firm.

Teamgene [SHA: 603151] closed 7.2 percent lower at CNY19.91 (USD2.80) a share in Shanghai today, bringing its total decline to almost 22 percent since Nov. 7. The stock had surged after the firm announced the plan to buy the assets in the middle of June, soaring to a record high of CNY31.36 (USD4.40) at one point on Sept. 16.

Teamgene ended the acquisition plan because it failed to reach an agreement on the transaction terms with Singapore-registered Riverstone Farm after rounds of negotiations and discussions, the Shandong province-based company announced late yesterday.

A senior management team led by Teamgene's Chairman and General Manager Wang Youcheng will answer questions from investors regarding the termination of the plan on Shanghai Stock Exchange Online Roadshow Platform event early on Nov. 17, the company noted.

On June 16, Teamgene said it will issue new shares and pay cash to Riverstone Farm to fully acquire six pig farms and an 80 percent stake in Pipestone Livestock Technology Consulting.

Riverstone Farm's shareholders include two investment funds under Proterra Investment Partners, a Cargill-affiliated asset manager, along with Pipestone, the fifth-largest pig farming firm in the United States, Teamgene said in June, adding that the six farms apply Pipestone's advanced breeding practices, with over 80 percent of their equipment imported from the US.

Teamgene's feed products have a big market share in Shandong and Northeast China. The firm hoped the deal would expand its core business beyond feed research, development, production, and sales into downstream pig breeding operations, creating an integrated value chain that spans feed processing, hog breeding, and sales, likely diversifying revenue sources, boosting profitability, and reducing operational risk.

Editor: Martin Kadiev