July 29 -- Nanjing Redsun (000525), a producer of pesticides and raw chemical materials, said it won approval from the China Securities Regulatory Commission for its plan for an asset restructuring through a private placement, reports China Business News, citing a comany filing.

The company's shares had surged by almost 50 percent cumulatively during the June 23-July 28 period.

According to the plan, Redsun is to offer 223.56 million shares at 9.28 yuan per share to Nanjing First Pesticide Group to fully acquire three subsidiaries of the latter.

The target subsidiaries are valued at 2.08 billion yuan. After the completion of the transaction,  First Pesticide will become the parent of Redsun.

The deal will complete Redsun’s industrial chain for pyrethrins, pyridine base, and hydrocyanic acid.