Sunshine Insurance's Stake in Yili Industrial Group Hits 5 Percent

(Beijing) — Sunshine Insurance Group disclosed Monday that its stake in dairy-products maker Inner Mongolia Yili Industrial Group Co. Ltd. has reached 5 percent, prompting debate over whether the move is a simple investment or prelude to a hostile takeover bid.

Trading in Yili shares was halted on Monday after the disclosure.

Sunshine said it bought 5.67 million Yili shares Wednesday, boosting its total holdings from 4.91 percent to 5 percent — the threshold that requires a public disclosure.