(Yicai Global) June 23 -- Shares in Kingclean Electric surged to their highest level since June 2015 today after the Chinese household appliance and automotive motor maker announced that it will spend as much as CNY1.46 billion (USD225 million) to acquire a US-backed auto parts manufacturer to boost its new energy vehicle business.

Kingclean’s stock price [SHA:603355] closed up 7.17 percent at CNY61.40 (USD9.48). Earlier in the day it had reached CNY62.16.

Kingclean has made an offer to purchase a 100 percent stake in Shanghai-based PGI Far East Precision Products, a maker of electric car parts that counts Ford, Volkwagen, Fiat Chrysler and BMW among its clients, for between CNY1.24 billion and CNY1.46 billion, the company said yesterday.

A letter of intent has been inked with owners North Carolina-based Paragon Trading Corp. and Michigan-based GIL-MAR P.H.G Far East Automotive, the Suzhou-based firm added. The final price will be decided at the time of delivery.

Editor: Kim Taylor