Skylink's (SGX:XZB) subsidiary, Skylink Engineering, incorporated Chuang Li Partners (2017) to acquire the business of Chuang Li Partners and related assets on a going concern basis for about SG$1.8 million, according to a Tuesday filing with the Singapore Exchange.

Shares of the company were up nearly 2% in Wednesday trading.

The newly-established subsidiary also agreed with Chuang Li's general manager and an existing shareholder to conduct business through a joint venture following the completion of the proposed acquisition and related businesses.

The business to be acquired by Chuang Li Partners (2017) includes the design, manufacture, installation and customization of upper body structures of commercial vehicles. It also includes chassis alteration and extension, additional axles installation, among others.

The proposed acquisition is expected to be completed no later than one month from the date of this agreement.

The acquisition is part of the company's strategy to expand its business through mergers and acquisitions and joint ventures.