Sir Jim Milne is in talks to sell Altens-based Balmoral Comtec to German firm Freudenberg Flow Technologies.
The proposed sale, The Press and Journal reports, is part of a deal being assessed by ministers under the National Security and Investment Act.
The deal for Balmoral Comtec, which has almost 400 staff and recorded sales of over £140million last year, has been cleared by the government to proceed under conditions intended to protect sensitive UK technology.
Part of Balmoral Group, Balmoral Comtec designs and manufactures technology for offshore energy markets and is an important part of the subsea supply chain in the North Sea and around the globe.
Its revenue makes up the lion's share - around 70% - of Balmoral Group's total sales of £202million last year.
A company spokesperson said there would be no immediate changes to operations and that an update would be provided in due course.
Read the full story in The Press and Journal.