(Yicai Global) June 15 -- Shares in Guangzhou Grandbuy closed at a four-and-a-half year peak today after the department store chain revealed it had secured CNY700 million (USD99 million) from China Life Insurance to help push forward a major restructuring.

Its stock [SHE:002187] finished up by the 10 percent daily maximum at CNY14.40 (USD2.03) today, its highest since the end of 2015 and topping off a 115 percent gain from May 19. China Life closed 2.63 percent lower at CNY27.40.

Grandbuy will use the money from China Life unit China Life Insurance Asset Management, raised through a private share offering, to contribute toward acquiring all assets belonging to Friendship Group, a local-high end department store operator also based in Grandbuy’s hometown, it said in a statement on June 13.

Grandbuy will pay for the remainder of the assets by privately issuing its own shares to existing Friendship Group shareholders, it said. The firm has not yet decided how many shares it will issue as it has not determined a valuation of the target company.

Friendship Group runs four well-known department stores in Guangzhou, and the acquisition of these outlets will give Grandbuy a total of 30 in the region, covering some 250,000 square meters, the statement added.

Editor: James Boynton