Ohki Co., Ltd. (JASDAQ: 8120) entered into a heads of agreement to acquire Stax Electrical on September 14, 2011. The consideration is to be paid in cash and stock. The payment terms of the acquisition are also geared around the performance of the business after settlement. The purchase price will be partly paid upon the sale agreement being executed with the remaining balance paid in 12 months. The cash component will be funded by a new debt facility, and is subject to a due diligence of Stax Electrical and Ohki. The debt facility has been pre-approved. The transaction is expected to generate revenues more than $7 million annually. The transaction is expected to be completed within the next 10 weeks.

Ohki Co., Ltd. (JASDAQ: 8120) cancelled the acquisition of Stax Electrical on September 14, 2012.