MTAG (KLSE:MTAG) signed a letter of intent to acquire 100% equity interests in L.H. Label (M), and L.H. Labelprint for an indicative 13.8 million ringgit, according to a Thursday filing with Bursa Malaysia.

The proposed acquisition will be funded entirely through internally generated funds and is subject to due diligence.

The target companies manufacture and supply labels and related printing products.

MTAG's shares rose 2.5% in recent trade.