Hisaka Holdings said it has entered into a conditional sale and purchase agreement for the proposed acquisition of Regal International Holdings.
The automation systems firm will buy the investment holding company for $127.25 million, with a mix of cash and shares.
Regal International will also acquire 100 per cent of Regal Capital, which is a Malaysian investment holding company.
The firm said in a statement on Dec 20 that the proposed acquisition is an investment opportunity that would be in the best interests of the company.
Even though Hisaka had been profitable in the previous financial years ended Sept 30 2012 and 2013, it recorded slim net profits of about $400,000 in each financial year.