Top Glove’s Lim buys 10.24% of Tropicana

This article first appeared in The Edge Financial Daily, on October 25, 2017.
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KUALA LUMPUR: Top Glove Corp Bhd’s controlling shareholder and co-founder Tan Sri Lim Wee Chai, after buying a 10.24% stake, has become a substantial shareholder of Tropicana Corp Bhd. 

Lim bought the stake from Tropicana’s founder Tan Sri Danny Tan Chee Sing and his related companies. Subsequently, Lim has been appointed to Tropicana’s board as deputy chairman effective immediately, according to a filing with Bursa Malaysia yesterday. 

Tan sold part of his direct stake, 82.86 million shares or 5.68%, to Lim, according to the filing. Golden Diversity Sdn Bhd has also sold 33.5 million shares and Aliran Firasat Sdn Bhd has disposed of 8.21 million shares to Lim. The two companies are Tan’s investment vehicles.   

However, the transaction price was not disclosed in the filing with the stock exchange. Based on yesterday’s closing of 93 sen, Lim’s 10.24% stake will cost him RM139.6 million. 

An interesting twist — while the investing fraternity is awaiting Top Glove to announce its acquisition of another glove manufacturer soon, Lim, in his personal capacity, has bought into a property firm. 

“I have always had my eyes on property development, and I believe now is the right time and Tropicana is the right company,” said Lim in a statement yesterday. 

“Over the years, Tropicana has proven itself by delivering high-quality and iconic projects to its customers. With my business experience, and regional as well as international contacts, I hope to contribute positively in moving Tropicana up the value chain.”

Lim’s interest in real estate was made known in 2013 when the tycoon, together with Top Glove, bought the east wing of The Icon property near Jalan Tun Razak, Kuala Lumpur, for RM226 million in cash through the investment company, Value Add Sdn Bhd. Lim controls 68% of Value Add, while Top Glove has a 27% equity interest. 

In the statement, Lim added that he looks forward to work closely with Tropicana’s management in upholding honesty, integrity and transparency to enhance corporate governance, value for shareholders, and Tropicana’s competitive edge.

Tan, in the same statement, said the board consists of iconic corporate figures that have made significant impact in their respective industries, locally and abroad.

“Their successful and diverse experiences will surely give us a broader perspective, adding vibrancy and creativity to our overall business strategy,” said Tan.