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KUALA LUMPUR: Precision engineering parts maker Foundpac Group Bhd is buying a 70% stake in a manufacturer of accessory cables and connectors for RM8.4mil.

The purchase, Foundpac said, would give the company a foothold in the wire and cable market, as well as the opportunity to cross sell its products.

Wholly owned Foundpac Capital Sdn Bhd on Monday entered into a conditional share sale agreement with NG Phaik Lee and Kamida Shin to acquire a 70% stake in SDKM Technologies Sdn Bhd.

Upon completion, Lee would remain a substantial shareholder in SDKM with a 26.67% stake while Shin's equity interest would reduced to 3.33%.

The total consideration of RM8.4mil million was arrived at on a willing-buyer willing-seller basis, Foundpac said.