KUALA LUMPUR (July 30): The Kuala Lumpur High Court today dismissed a Mareva application filed by Top Glove Corp Bhd and Top Care Sdn Bhd against Adventa Capital Pte Ltd, related owners and directors, and its private vehicle ACPL Sdn Bhd.

However, Top Glove announced in a filing with the stock exchange today that it will be appealing the High Court’s decision.

“The company wishes to announce that Top Glove and Top Care’s Mareva application against Wong Chin Toh, Low Chin Guan and ACPL in the writ action, as well as against Adventa Capital in the Kuala Lumpur High Court in aid of the Singapore arbitration proceedings, were not allowed by the High Court. The company will be appealing the High Court’s decision,” the filing read.
 
In response to the latest development, Singapore-based Adventa Capital said in a statement that the court had ruled there was “no good arguable case for the alleged fraudulent misrepresentations or for that matter, negligent misrepresentations”.

As such, Top Glove has been ordered by the court to compensate Adventa Capital for the costs of defending the application, the statement added.

“Top Glove has chosen to make attacks of a very serious and personal nature against two of our directors,” said Wong, a director of Adventa Capital, in the statement.

“These attacks are unjustified and amounts to an attempt to claw back a significant part of the purchase price,” he added.

Adventa Capital reiterated that Top Glove’s legal claims against itself and its directors have no merit and are denied, and that it will seek redress for reputational and financial losses and damages.

“Top Glove and Top Care’s proceedings against Wong, Low and ACPL in the Writ Action, as well as the Singapore arbitration proceedings against Adventa Capital are ongoing,” Top Glove said.

It noted that the Singapore Mareva Injunction remains in force and that the hearing of Adventa Capital’s application to set aside, will be heard on Aug 23, 2018. 

To recap, Top Glove announced on July 6 that it had initiated arbitration proceedings against Adventa Capital, claiming RM714.86 million in damages and losses suffered.

This follows the allegedly fraudulent misrepresentation made by Adventa Capital to induce Top Glove and Top Care into entering a share purchase agreement in April for the acquisition of Aspion Sdn Bhd for RM1.37 billion earlier this year.

Top Glove also disclosed that the Kuala Lumpur High Court had granted an ex-parte Mareva injuction on July 2, restrainting Low and Wong from disposing their assets in Malaysia up to the value of RM714.86 million, and ACPL up to the value of RM72.3 million.

On July 12, Top Glove said the ex-parte Mareva Order it had obtained on July 2 to freeze the assets of Wong Chin Toh, Low Chin Guan and ACPL, had been “discharged and removed”.

Shares of Top Glove closed unchanged at RM10.08 today, after 4.67 million shares crossed hands, valuing it at a market capitalisation of RM12.88 billion.