Lau family's controlling stake in Comfort Gloves remains intact

Lau family's controlling stake in Comfort Gloves remains intact
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(This article has been updated to clarify that the Lau family continues to have a controlling stake in Comfort Gloves Bhd even after Brian Lau Joo Kien sold a 14.41% stake through investment vehicle Keen Setup Sdn Bhd.)

KUALA LUMPUR (Sept 4): Comfort Gloves Bhd has announced that the Lau family's controlling interest in the company via its investment vehicle Keen Setup Sdn Bhd remains intact.

To recap, according to the company's filing with Bursa Malaysia yesterday, Brian Lau Joo Kien ceased to be a substantial shareholder of Comfort Gloves after he disposed of 84 million shares or a 14.41% stake in the company on Wednesday.

Today, Comfort Gloves' filing explained that while Joo Kien ceased to be a substantial shareholder of Comfort Gloves due to an internal restructuring in Keen Setup, the Lau family still retains a controlling interest.

"The company wishes to clarify that the disposal of shares by Joo Kien (the son of Datuk Lau Eng Guang) in Keen Setup is to his immediate family member (herein refer to internal restructuring of Keen Setup).

"After the internal restructuring of Keen Setup, Joo Kien's controlling interest in Keen Setup had dropped below 20% hence he ceased to have deemed interest through Keen Setup pursuant to Section 8(4) of the Companies Act 2016, and thus, ceased as a substantial shareholder of the company.

"In conclusion, Keen Setup is still controlled by the Lau's family and their controlling interest in Comfort via Keen Setup remained unchanged," said the filing.

Eng Guang is from the Lau family that controls Leong Hup International Bhd. Joo Kien's brother Lau Joo Yong is an executive director of Comfort Gloves while his cousin Lau Joo Pern is a non-executive director of Comfort Gloves.

Eng Guang held a direct interest of 3.68% or 21.43 million shares and indirect interest of 14.41% or 84 million shares via Keen Setup as at July 17. Meanwhile, Joo Yong owned a direct interest of 6.33% or 36.88 million shares in Comfort Gloves as at Aug 14.

At noon break, Comfort Gloves' share price was 2.11% or nine sen lower at RM4.17, valuing the company at RM2.49 billion. Some 10.87 million shares were transacted.

Lam Jian Wyn