(Yicai) Jan. 27 -- Shares of Vantone Neo Development Group plunged by their daily trading limit after the Chinese real estate developer said it terminated its plan to buy a controlling stake in Source Photonics Holdings, a US developer of optical communication devices, due to disputes over some terms.

Vantone [SHA: 600246] closed down 10 percent at CNY5.47 (75 US cents) a share today. The broader Shanghai market shed 0.1 percent.

Vantone has decided to withdraw from the transaction due to changes in market conditions, as the parties involved could not reach an agreement on certain commercial terms, the Beijing-based company announced late yesterday. An explanation regarding the deal's termination will be given to investors via an online platform today, it added.

On June 23, Vantone said it would buy 124 million shares, or just over 60 percent, of Source Photonics at USD2.6179 apiece from 12 investors, including Diamond Hill and Shanghai Lucun Enterprise Management Consulting, for a total of USD324 million to drive its business transformation. Its stock ended the next day down 10 percent.

Vantone first announced the plan to gain control of Source Photonics in November 2023. On that occasion, its third-largest shareholder, GLP Capital Partners, voted against the acquisition, with the news causing Vantone's stock to plunge again by the 10 percent limit.

On April 12, GCP sold 5 percent of its shares in Vantone to a Chinese investor for CNY699 million (USD96.2 million), thus leaving way for Vantone's acquisition of Source Photonics as the Singaporean firm was no longer among Vantone's main shareholders.

Source Photonics, registered in the Cayman Islands, focuses on developing and producing optical chips, components, and module products. It has research, development, and manufacturing subsidiaries in China's Chengdu, Changzhou, and Taiwan. 

Editor: Martin Kadiev