Shares of 5100 XIZANG (ASX: 01115) have risen more than 6%. At the time of writing, the stock is up 6.25% to HK$0.425, with a turnover of HK$769,700.

Details of the Acquisition

The company has announced that on June 25, 2026, the seller Gangrenboqi Trading Co., Ltd., the buyer Jiman Co., Ltd. (a wholly-owned subsidiary of the company), and the company entered into a sale and purchase agreement. Under this agreement, the buyer conditionally agreed to acquire, and the seller conditionally agreed to sell, the entire issued share capital of the target company, Nianqing Tanggula Investment Co., Ltd. The target company holds a 72% equity interest in the Chinese entity, Tibet Life Water Development Co., Ltd. The consideration for the acquisition will be satisfied by the issuance of 380 million new shares by the company.

Previous Stake and Strategic Value

In 2025, the group had already acquired a 28% stake in the same Chinese company for a consideration of RMB 92.4 million through another wholly-owned subsidiary. The Chinese company holds the water extraction rights for a water source in Shannan, Tibet. This source is described as a rare, distinctive, and highly suitable base for producing dedicated infant formula water, not only in Tibet but across China, with an annual extraction capacity of up to 400,000 tons.

Expected Outcomes and Growth

The successful acquisition of this unique water source base is expected to allow the company to enter the specialized market for infant health and development. It is anticipated to yield significant social and economic benefits, leading to highly positive and encouraging results. The water source is projected to substantially enhance the group's overall production capacity and enable the expansion into new sales channels.