(Yicai Global) July 29 -- Shares in China Shengmu Organic Milk, a dairy firm based in China’s northern Inner Mongolia Autonomous Region, surged over 100 percent today after it gained a HKD395 million (USD51 million) investment from one of Asia's biggest milk companies Mengniu Dairy.

The milk giant became Shengmu Organic Milk's largest shareholder after this buy-in.

Shengmu [HK:1432] skyrocketed this morning after it released the statement on this investment, surging 108 percent to HKD0.50 by 11.12 to give it a HKD3.5 billion (USD450 million) market value.

Mengniu conducted 1.2 billion stock warrants at a price of HKD0.33 per share on July 27, according to the statement, which added its stake in Shengmu rose to 17.8 percent from 3.83 percent, dislodging its controller Shao Genhuo, who is company chairman.

A stock warrant is an option to buy a company's stock at a certain price on a specific date which a company issues directly to an investor that believes the price will either rise or fall.

Editor: Ben Armour