MTAG proposes RM13.8 million acquisition of two label manufacturers
The proposed cash deal is subject to due diligence, further negotiations, an independent property valuation and board approval.
MTAG Group Bhd has proposed buying full ownership of LH Label (M) Sdn Bhd and LH Labelprint Sdn Bhd for an indicative cash consideration of RM13.8 million. The printing and labelling company said the purchases would widen its product offerings and customer base.
In a filing with Bursa Malaysia, MTAG said it had entered into a letter of intent (LOI) with Khor Chun Chuan, who owns both target companies outright. Their businesses involve producing and supplying labels and associated printed products.
MTAG plans to use internally generated funds to finance the purchases. It reported RM8.02 million in cash and cash equivalents as at June 30, 2026, with no borrowings. The proposed consideration exceeds that cash balance by about RM5.78 million.
The price remains open to further negotiation and depends on satisfactory due diligence covering legal, financial, tax and operational matters. The proposal also requires an independent valuation of landed properties belonging to the target companies, alongside approval by MTAG’s board.
MTAG said the earnest deposit would be returned under the LOI’s terms if the conditions were not fulfilled within three months of acceptance, unless an extension was agreed. It said the purchases could create operational and commercial synergies and provide access to the manufacturers’ customer relationships, resources and industry experience.
