(Yicai) Dec. 6 -- Shares in Tianjin Motor Dies surged by the exchange-imposed limit today after the Chinese automobile chassis mold manufacturer said that a branch of the State-owned Assets Supervision and Administration Commission has become its new owner.  

TMD’s share price [SHE: 002510] was trading up 10 percent at CNY5.35 (USD0.75) as of 2.30 p.m. today after suspending trading two days ago.

TMD’s majority shareholder, which is made up of a consortium of eight individuals, is selling 17.1 percent equity to Huaibei Jianjiu Equity Investment Fund Partnership for around CNY787 million (USD110.4 million) based on the company’s latest closing price of CNY4.86 (USD0.68) a share, it said.

The selling price is estimated to be CNY787 million (USD110.4 million) based on the company’s latest closing price of CNY4.86 (USD0.68) a share.

The eight people who make up the firm’s controlling want to sell their shares due to their advancing age, the company said on Nov. 15. One of them, 75-year-old Hu Jinsheng, is a founding member of the firm and the largest shareholder among them with 4.7 percent equity.

TMD tried to change controller in 2020 through a sale of a 17.7 percent stake to another SASAC-owned entity Zhumadian Industrial Investment Group at a price of CNY7.33 (USD1) per share. But the deal fell through because the deposit was not paid.

TMD’s net profit plunged 20.5 percent in the first three quarters from a year earlier to CNY87.8 million (USD12.3 million) while revenue climbed 6.7 percent to CNY1.7 billion (USD232.4million), according to its latest earnings report. The firm has around 2.5 billion mold orders in hand, of which about a half are for new energy vehicles.

Editor: Kim Taylor