Linkers Industries Limited (NASDAQ:LNKS) ("Linkers" or the "Company"), a manufacturer and supplier of wire and cable harnesses with operations in Malaysia, today announced it has entered into a non-binding Memorandum of Understanding ("MOU") to acquire certain equity interests in LPW Electronics Co. Ltd. ("LPW") in Thailand.  If consummated, the proposed transaction could expand Linkers' manufacturing and production capabilities and support the Company's operation and further expansion plans.

Founded in 2023, LPW is principally engaged in the manufacturing of wire harnesses in Thailand. It owns a three-level factory building and a dedicated warehouse of around 6,500 square meters erected on approximately 8,000 square meters of land in Pathum Thani, Thailand. LPW's customer portfolio comprises multinational corporations with operations in Thailand mainly in the automotive and industrial sectors. 

Under the MOU and subject to entering into a definitive agreement, Linkers will acquire up to 29% of the equity interests in LPW from Mr. Man Tak Lau, the controlling shareholder of Linkers, as well as certain loans due and owing by LPW.  Linkers currently owns 20% of the equity interests in LPW and will own up to 49% of the equity interests in LPW if the potential acquisition is consummated.

The proposed transaction remains subject to, among other things, completion of due diligence, negotiation and execution of a definitive agreement, required approvals, and satisfaction of customary closing conditions. There can be no assurance that a definitive agreement will be executed or that the proposed transaction will be completed.