August 3 – Wuhan Shanglian Group, the largest shareholder of Wuhan Department Store Group (000501), intends to spend 538 million yuan to further acquire a five-percent stake or 25.36 million shares in the listed company at 21.21 yuan per share, reports National Business Daily, citing a company filing.

Since Wuhan Shanglian Group increased its stakes in Wuhan Department Store through a block trade platform on June 9, it will have spent roughly 1.1 billion yuan if the current acquisition succeeds.

Wuhan Shanglian Group now holds a 29.99-percent stake in Wuhan Department store. According to the regulation, if Wuhan Shanglian intends to further increase its holdings in the listed company, it has to offer it an acquisition tender.

According to the report, the current acquisition faces two major obstacles. If the stock price of Wuhan Department Store tops 21.21 yuan, it will not sell the stocks to Wuhan Shanglian. Also, Zhejiang Intime Department Store, the second-largest shareholder of Wuhan Department Store, may offer a higher bid price to acquire an interest in the listed company.