UMS Integration (KLSE:UMSINT) signed a memorandum of understanding with two founding shareholders to explore a proposed restructuring and investment in Vietnam-based precision engineering and metal processing businesses, according to a Friday Malaysian bourse filing.

Shares dropped about 6% around midday Monday.

Under the deal, the company plans to invest about $3.6 million in a newly formed entity that will consolidate the target businesses, potentially giving UMS a 51.6% stake and making it a unit, subject to due diligence and final agreements.

The deal involves companies engaged in precision engineering, plating, and semiconductor-related manufacturing, aligning with UMS's strategy to expand its footprint in Southeast Asia.

UMS Integration said the transaction is still preliminary, with no certainty that definitive agreements will be signed or that the proposed investment will be completed.