(Yicai Global) March 29 -- Shares in the leading supermarket player in China's central region hit the maximum daily increase allowed on the country's stock market today following a partial takeover offer from Yonghui Superstores, one of the largest Chinese grocery retailers.

Zhongbai Holdings' stocks [SHE:000759] rose 10 percent in trading to reach CNY7.25 (USD1.08) this morning after Yonghui Superstores bid CNY559 million (USD83 million) to raise its stake to 40 percent from 30 percent before, according to a statement from the Fuzhou-based firm yesterday.

Yonghui has issued a tender offer to shareholders in Wuhan-based Zhongbai for a partial acquisition at CNY8.10 (USD1.20) per share, a 23 percent premium compared with the target's closing share price of CNY6.59 yesterday.

As a partial takeover, the deal will not affect Zhongbai Holdings' status as a listed firm, the statement emphasized.

Based in Wuhan, Zhongbai is a large-scale operator of chain stores and is the regional industry leader.

Yonghui became a shareholder in Zhongbai in November 2013 and has gradually increased its stake. The company did not disclose reasons for the deal in the statement.

Zhongbai possesses clear advantages in the Hubei provincial market, which is quite attractive to Yonghui, Shen Jun, a senior analyst in the retail sector, told Yicai Global. It has fought for years to become a shareholder. The deal can boost Yonghui's positioning in the western and central regions, he added.

Chinese retail players possess regional features, making it difficult for companies to gain a dominant national presence, Shen said, adding that the move represents a quick and effective means of expansion.

Editor: William Clegg