Asiatic Group (SGX:5CR) has agreed to fully acquire Malaysian automotive dealership, Karrus Mobility's Chery iCaur electric vehicle brand for SG$2 million, according to a Friday filing with the Singapore Exchange.

The acquisition is part of the fire protection company's strategy to establish new revenue streams and enter the automotive sector.

The brand will initially focus on vehicle sales, after-sales service and spare parts distribution in Malaysia.

The vendor is also required to open a second showroom in the country within six months of completion of the acquisition.

The company will place out new shares to two private investors and Singapore firms to fund the acquisition.

Shares of the company slid over 33% in Friday trading.