(Yicai Global) Dec. 22 -- Shares of China's SLAC Precision Equipment jumped after the automated production equipment supplier said it will buy a controlling stake in Ali System's battery shell assets to enrich its product portfolio.

SLAC's stock price [SHE: 300382] soared as much as 13.1 percent to CNY24.25 (USD3.80) intraday. The shares have surged almost three times in value this year.

The two equipment suppliers have penned an equity investment agreement, the Suzhou-based buyer said in a statement today.

SLAC is looking to improve its battery business and to make use of its advantages to enhance the automated production of the new assets via the deal, it said. The price and other details of the acquisition will be negotiated later.

Through the transaction, SLAC, which already makes shells for cylindrical battery cells, should be able to tap into the larger market of prismatic cells, it said. Moreover, it may be able to get closer to major battery manufacturer clients.

The transfer should happen in parts. Dongguan-based Ali System will first inject its battery shell assets into a target company and after that SLAC will purchase a controlling stake in it. Finally, the ex-controlling stakeholder intends to keep a minority stake in the target company.

Editor: Emmi Laine, Xiao Yi