Thursday 28 Mar 2024
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KUALA LUMPUR(July 11): Top Glove Corp Bhd’s shares came down by as much as 57 sen or 5.8% this morning to RM9.33, after announcing yesterday that it has initiated arbitration proceedings against Adventa Capital Pte Ltd.

At 3.20pm, the counter had recovered slightly but was still down 14 sen or 0.14% at RM9.76.

Top Glove is claiming RM714.86 million in damages and losses in the arbitration filed in Singapore.

This follows the allegedly fraudulent misrepresentation made by Adventa Capital to induce Top Glove and its wholly -owned subsidiary Top Care Sdn Bhd into entering a share purchase agreement in April.

In a note yesterday, MaybankIB Research said Top Glove may need to provide for an impairment on Aspion in its fourth financial quarter ended Aug 31, 2018 (4QFY18). It said the profit guarantee that was provided by Aspion may not hold anymore. MaybankIB maintained its Hold call on Top Glove with a lower target price of RM9.90, from RM12.90 previously.

PublicInvest Research had a trading sell call on Top Glove, with a target price of RM9.65.

“We maintain our Trading Sell call as we think that the stock performance will remain weak, given the uncertainties and downside risks of the legal issue i.e risk of impairment, long-drawn litigation process and lawsuit fees,” the firm said in a note yesterday.

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