Thursday 28 Mar 2024
By
main news image

KUALA LUMPUR (March 3): Top Glove Corp Bhd's share price rose as much as 25 sen or 4.46% to RM5.85 in morning trades today after the rubber glove manufacturer said yesterday the company and Adventa Capital Pte Ltd had settled amicably their legal dispute on the purchase of Aspion Sdn Bhd by Top Glove's subsidiary Top Care Sdn Bhd.

Yesterday, Top Glove said in a Bursa Malaysia filing that Top Glove and its subsidiaries Top Care and Aspion had entered into the settlement agreement with Adventa, ACPL Sdn Bhd, Low Chin Guan, Wong Chin Toh and Kwek Siew Leng (collectively known as Adventa parties) to record the settlement terms regarding legal actions involving the purchase of Aspion.

"Among the terms of the settlement agreement, with no admission of liability by any party, Top Care will receive a total of RM245 million as full and final settlement of the disputes, and all the relevant parties in the legal actions shall withdraw their respective claims with no liberty to file afresh and no order as to costs," Top Glove said.

Today, Public Investment Bank Bhd analyst Chua Siu Li wrote in a note that Public Investment views the end of the dispute positively as the proceeds can help improve Top Glove’s cash position and be redeployed for the its business expansion.

"We retain our outperform call on Top Glove shares and maintain our TP (target price) of RM8.60," Chua said.

At 9:35am today, Top Glove shares were traded at RM5.76 for a market capitalisation of RM14.35 billion. The stock saw 1.19 million shares traded.

      Print
      Text Size
      Share