(Yicai) March 2 -- Shares of SDI skyrocketed after the Australian supplier of dental restorative materials said it is being acquired by Chinese ceramic materials giant Sinocera Functional Material for AUD166 million (USD109.6 million).

SDI [ASX: SDI] closed up over 45 percent at AUD1.28 (90 US cents) today. Meanwhile, Sinocera's stock rose 0.7 percent to CNY38.51 (USD5.59) today, after hitting a four-year high of CNY39.65 following a 28 percent gain in the past five trading days.

Sinocera will buy all SDI shares for AUD1.40 apiece, a premium of 56 percent to the target company's 30-day volume weighted average price up to and including Feb. 27, the pair announced in separate statements on Feb. 27.

SDI's largest shareholder, an entity controlled by the firm's Chairman Jeffery James Cheetham, which holds 46 percent of SDI's issued ordinary shares, has confirmed its intention to vote in favor of the scheme, SDI said, adding that its board unanimously recommends that shareholders vote in favor as well.

"The acquisition of SDI by Sinocera will unite two highly complementary businesses to create a stronger, more globally competitive platform in advanced dental materials," SDI noted.

"By combining SDI's long-standing innovation capabilities, trusted brand portfolio, and deep relationships across key markets with Sinocera's leading functional materials expertise, manufacturing scale, and significant investment capacity, the combined group can unlock meaningful synergies," SDI pointed out. "The combined group will benefit from enhanced global reach, an expanded research and development capability and joint expertise."

The transaction remains subject to approval from relevant regulatory authorities in both Australia and China, the two companies added.

Melbourne-based SDI is a leading manufacturer and global distributor of professional dental materials, mainly engaging in the research, development, production, and sales of a full range of restorative dental products, which are all made in the Australian state of Victoria and sold to more than 100 countries and regions worldwide, according to Sinocera's statement.

SDI posted AUD110 million in revenue and AUD13.1 million (USD8.6 million) in net profit in the fiscal year ended June 30, 2025, with net assets of AUD103 million.

Editor: Futura Costaglione