Thursday 28 Mar 2024
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KUALA LUMPUR (Oct 24): Top Glove Corporation Bhd today said it was indeed in talks to acquire a glove manufacturer as part of its expansion strategy.

However, in responding to a report earlier this morning, the company clarified in a filing to Bursa Malaysia that it was not acquiring/buying Adventa Bhd or Supermax Corporation Bhd.

The Edge Financial Daily today reported that speculation has been rife on the potential acquisition target for Top Glove after its executive chairman Tan Sri Lim Wee Chai told pressmen last week that the group is set to announce a major acquisition soon that could cost more than a billion ringgit.

Lim said the acquisition target would be a Malaysian company that produces both surgical and examination gloves. According to Top Glove's 2016 annual report, surgical gloves only make up 2% of the group's product mix.

Last week, Nikkei Markets, quoting a dealer, reported that the closest glove maker which meets the criteria and could sell its glove unit is Supermax.

The report said the market is speculating that Supermax may dispose of its assets at a premium.

Top Glove said it was constantly evaluating merger and acquisition opportunities as part of its business expansion strategy.

"The Board, however, wishes to clarify that Top Glove is not acquiring/buying Adventa or Supermax.

"Nonetheless, Top Glove is currently in negotiations to acquire a glove manufacturer (proposed transaction), the terms and conditions of which have not been finalised at this juncture.

"Further details of the proposed transaction will be announced to Bursa Malaysia Securities Bhd in compliance with the requirements of the Main Market Listing Requirements of Bursa Malaysia Securities once a definitive agreement has been entered into," it said.

At the midday break today, Top Glove fell 1.8% or 12 sen to RM6.56 with 517,100 shares traded.

 

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