(Yicai Global) Oct. 10 -- Winemaker Citic Guoan Wine Co. [SHA:600084] plans to spend CNY2.71 billion (USD410.7 million) to acquire a lithium carbonate firm from its controlling shareholder, Citic Guoan Group, in a bid to restructure its business lines and branch out into the new energy market.

The listed firm will buy out Qinghai Citic Guoan Lithium Industry Development Co. through a share issue, it said in a statement yesterday. The price of the purchase comes in at around CNY6.72 (USD1.02) a share.

The target firm's core product is lithium carbonate, which is mainly used in the production of new-energy vehicle batteries and solar storage battery products. The move comes as China's lithium battery industry is experiencing steady growth driven by demand.

Citic Guoan Wine has suffered continued losses in recent years as foreign wines have begun to infiltrate the Chinese market. It posted a net loss of USD7.24 million in the first half of this year.

The acquisition could help the winemaker branch out into a new industry and set up foundations for a business transition into the new-energy sector.