Avi-Tech (SGX:1R6) agreed to acquire potentially up to 100% shares in Create Technologies for about SG$18.9 million, subject to certain targets, according to a Monday filing with the Singapore Exchange.

Under a non-binding term sheet, both parties have agreed to stake in the electronics research and development firm being acquired in four phases.

In Phase 1, Avi-Tech will subscribe for around 85,714 shares for a consideration of SG$2 million, giving it an initial 30% stake.

In Phases 2 to 4, the companies will be subject to put and call options tied to revenue and profitability milestones, which could increase Avi-Tech's ownership up to full control.

The transaction is subject to shareholder approval at an extraordinary general meeting, regulatory approvals, and due diligence, the filing said.