BEIJING - Chinese electronics parts manufacturer Victory Giant Technology Huizhou said on Wednesday that it had agreed to buy Singapore’s printed circuit board maker MFS Technology for up to US$460 million (S$608 million).

Victory Giant will pay in cash to acquire Pole Star Ltd to indirectly own MFS Technology (S) and all its subsidiaries, with equity value worth of about US$365 million and debts worth up to US$95 million, according to a filing by Victory Giant in the Shenzhen stock exchange.

Acquiring the target, which makes flexible printed circuits, will diversify products and improve competitiveness for Victory Giant, which is strong in making rigid printed circuit boards, the filing said.

The announcement comes four months after Reuters reported that Chinese private equity firm DCP Capital, founded by former KKR & Co dealmakers David Liu and Julian Wolhardt, was seeking to sell MFS for US$550 million, with BDA Partners and Jefferies advising on the sale.

DCP bought a controlling stake in MFS in 2018 from Navis Capital Partners and Novo Tellus Capital Partners for an undisclosed amount.

Founded in 1989, Singapore-headquartered MFS manufactures circuit boards with applications focused on automotive, industrial, medical and data storage end-markets. It manufactures in China and Malaysia, and has sales teams in Germany and Canada, its website shows.

Victory Giant said in the filing, funds for the deal will come from channels including its own capital and bank loans and the deal is pending registration procedures with local commerce authorities and China’s state planner, as well as approval from State Administration for Market Regulation. REUTERS