(Bloomberg) -- Asia Cement China Holdings Corp.’s majority owner is considering buying out the Hong Kong-listed company, people with knowledge of the situation said, as shares in the cement-maker soared Tuesday. 

Trading in Asia Cement China, which is controlled by Taiwan’s Asia Cement Corp., was suspended at around 3:30 p.m. in Hong Kong on Tuesday after the shares jumped as much as 47%, the most on record. 

Tuesday’s gain came after a 14% rally Monday and took Asia Cement China’s market value to $666 million. Even with the surge, the shares are still down 6% over the past 12 months, as the company has been hurt by China’s real estate crisis. Its market value was as high as $2.8 billion at a peak in July 2019. 

Deliberations are ongoing and may not lead to a transaction, the people said, asking not to be identified discussing confidential information.

A representative for Asia Cement Corp. declined to comment. 

Asia Cement Corp., whose biggest shareholder is Far Eastern New Century Corp., owns about 73% of Asia Cement China.

Asia Cement China warned last month it would likely post a first-quarter loss of about 129.7 million yuan ($17.9 million), compared with a net profit of nearly 41 million yuan a year earlier. 

The company’s revenue dropped 23% in 2023 to 7.4 billion yuan, according to its annual report, in which Chairman Hsu Shu-tong flagged challenges including a sharp decline in real estate investment and selling prices, as well as fierce competition. Net profit slid about 75% to 106 million yuan.  

Hsu is also chairman of Far Eastern New Century and Asia Cement Corp. The nine public companies in the wider Far Eastern Group, which Hsu also chairs, are involved in industries including textiles and polyester fiber, petrochemicals, cement, transport, telecommunications and hotels. 

Far Eastern Group had assets of about $105 billion at the end of 2023 and annual revenue of $23.4 billion, Asia Cement China’s annual report shows. 

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