A unit of Horizon Construction Development (HKG:9930) agreed to purchase 400,000, or 80%, shares in TH Tong Heng Machinery from two sellers for around 176 million ringgit, a Thursday Hong Kong bourse filing said.

Of this, 395,000 shares will be purchased from Chan Heng Choy and 5,000 shares from How Mee Cheng.

On the same day, Chan, who will continue to hold 100,000 shares in the target firm following the purchase, will grant buyer Horizon Construction Development Investment (Hong Kong) call options to purchase a further 10% shares he holds.

The purchaser will also grant put options to Chan for him to require the former to purchase the 10% shares mentioned above.

TH Tong Heng Machinery engages mainly in the rental of machinery and equipment, trading of new and second-hand machinery and equipment, and other business activities.