SINGAPORE - Chinese railway firm Midas Holdings has entered into an agreement to purchase Hong Kong-based Huicheng Capital for $264 million.

Huicheng Capital owns Dalian Huicheng, a company based in Dalian, China, which specialises in aluminium products.

Midas will be buying the company from seven individuals who currently hold stakes in it.

The acquisition offers opportunities for Midas to acquire a profitable business and further expand its core business, it said in an exchange filing on Nov 30.

After the acquisition is complete, Midas' range of products and services will be expand to include aluminium alloy stretched plates and hot-rolled aluminium alloy plates and coils, in addition to its existing aluminium alloy extrusion and cold-rolled plates and sheets product offerings.

It will also benefit from a wider customer base. Midas' customers comprise players in the infrastructure and rail transport sectors, with a focus on China and major global train manufacturers, while Dalian Huicheng's customers include firms in the aviation, aerospace, rail transportation, marine, automotive and petrochemical industries.

The company will seek shareholder approval for the acquisition at an extraordinary general meeting to be convened at a later date.