MD and largest shareholder sells more Comfort Gloves shares, left with less than 5% stake

MD and largest shareholder sells more Comfort Gloves shares, left with less than 5% stake
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KUALA LUMPUR (March 22): Comfort Gloves Bhd managing director Cheang Phoy Ken has ceased to be a substantial shareholder in the company, after selling 32 million shares or a 5.49% stake in the glovemaker, off-market.

The disposal was carried out on March 18 at RM2.40 per share, for a total of RM76.8 million, the company’s filing showed. This represents a premium of 23 sen or 10.6% to the counter's closing price of RM2.17 on that day.

Cheang had been a major shareholder in Comfort Gloves since 2013, when it was known as Integrated Rubber Corp Bhd.

From being the company’s largest shareholder with an 18.3% interest as at April 30 last year, the latest disposal leaves Cheang with only 24.53 million shares or a 4.21% direct stake, along with an indirect interest over 4.33 million shares or 0.74% of the company, for a total stake of  4.95%.

Despite continued outperformance in its bottom line, Comfort Gloves shares have lost 28.43% of its value year-to-date, in line with falling interest in glove stocks amid the global Covid-19 vaccine roll-out. 

The counter slid 4 sen or 1.83% to close at RM2.14 today, valuing the group at RM1.25 billion.   

Comfort Gloves has declared interim and special dividends, totalling five sen per share for the quarter ended Jan 31, 2021. The counter goes ex on March 29 and the dividends are payable on April 13.

S Kanagaraju