Mencast Holdings, which provides maintenance, repair and overhaul solutions, announced on Friday that it has received Singapore Exchange's (SGX) approval in-principle for a proposed acquisition.

The firm said on Nov 8 last year that it would acquire precision manufacturer Chinyee Engineering & Machinery, in exchange for new shares of Mencast Holdings.

It has obtained in-principle approval for the listing and quotation of 5.5 million consideration shares, and they will be allotted and issued at the issue price of 50 cents per share. The in-principle approval is subject to compliance with SGX's listing requirements.

The company will make a separate announcement when the shares are allotted and issued to majority vendors.