MINISO Group Holding Ltd., a global retailer of trendy lifestyle products, witnessed a staggering 30.24% plunge in its share price on Monday following the company's announcement of acquiring a 29.4% stake in Chinese supermarket operator Yonghui Superstores for a whopping 6.3 billion yuan ($893 million).

According to the announcement, MINISO plans to purchase the stake from units of DFI Retail Group, owned by British conglomerate Jardine Matheson, and e-commerce giant JD.com. The acquisition price represents a 3.1% premium over Yonghui's stock price as of September 20, 2024.

The news of the acquisition, which would make MINISO the largest single shareholder in Yonghui, sent shockwaves through the market, with investors expressing concerns about the significant cost and potential risks associated with the move into an entirely new business segment. The sharp drop in MINISO's stock price suggests that investors are skeptical about the company's ability to successfully integrate Yonghui's business and generate sufficient returns to justify the substantial investment.