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Portfolio & Strategy 8 Oct 2026

MTAG Group proposes RM13.8m acquisition of two Malaysian label makers

MTAG Group Bhd has signed a letter of intent to acquire full ownership of LH Label (M) Sdn Bhd and LH Labelprint Sdn Bhd for an indicative cash consideration of RM13.8 million. Both targets are owned outright by Khor Chun Chuan and produce labels and associated printed products. The deal is subject to due diligence, an independent property valuation, further price negotiation and board approval, and would be funded from internal cash.

Why this mattersAt RM13.8m against RM8.02m of cash at 30 June 2026, MTAG would need more than its stated liquidity to fund the purchase from internal funds alone.

  • Indicative cash consideration is RM13.8 million for 100% of LH Label (M) Sdn Bhd and LH Labelprint Sdn Bhd.
  • Seller Khor Chun Chuan owns both target companies outright.
  • MTAG reported RM8.02 million in cash and cash equivalents as at 30 June 2026 with no borrowings.
  • The proposed price exceeds MTAG's cash balance by about RM5.78 million.
  • Conditions include due diligence on legal, financial, tax and operational matters and an independent valuation of the targets' landed properties.
  • Earnest deposit is returnable if conditions are not met within three months of LOI acceptance, unless extended.
MTAG Group LH Label (M) counterparty LH Labelprint counterparty
Sources bursakl.com
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Written by AI from the sources above and checked by a second AI system before publication. No human wrote or edited this story. How it is made.

Updates

  • 2026-10-10 · Edited before publication: Facts and figures all grounded. 'Why this matters' called Malaysia's label sector 'fragmented', which the source does not support; replaced with the funding consequence that is in the source. RM retained because no MYR exchange rate was supplied.