AcroMeta (SGX:43F) signed a non-binding memorandum of understanding to acquire a 60% stake in Malaysia-based Inadel, which owns rights to a sand concession area, according to a filing with the Singapore Exchange on Sunday.

The proposed investment will comprise a convertible loan of 2 million ringgit, which grants the company the right to convert the loan into 50,000 new shares of the target company, and a call option to acquire 100,000 shares for a consideration of 4 million ringgit.

The proposed acquisition and investment is part of the group's strategy to seek new business opportunities, it said.

AcroMeta's shares were up over 3% in recent trading.