Top Glove unit to buy 2 fac­to­ries

New Straits Times - - Business -

KUALA LUMPUR: Top Glove Corp Bhd’s wholly-owned sub­sidiary, GMP Medi­care Sdn Bhd, has en­tered into agreements with A1 Glove Sdn Bhd and Titi Glove Sdn Bhd to ac­quire two fac­to­ries for a to­tal of RM39 mil­lion.

The group would be ac­quir­ing a fac­tory from A1 Glove in Ne­gri Sem­bi­lan for RM31.5 mil­lion, and another from Titi Glove in Jo­hor for RM7.5 mil­lion, it said in a fil­ing to Bursa Malaysia yes­ter­day.

The pro­posed ac­qui­si­tions were in line with the group’s plans to in­crease its pro­duc­tion ca­pac­ity and mar­ket share.

“In ad­di­tion, the ven­dors have agreed to sell their glove man­u­fac­tur­ing and trad­ing busi­nesses, in­clud­ing cus­tomers’ particulars and other re­lated in­for­ma­tion.

“There­fore, the group is ex­pected to boost its pres­ence and mar­ket share in devel­op­ing coun­tries, par­tic­u­larly China,” said Top Glove.

The group said it would be fund­ing the ac­qui­si­tions through a com­bi­na­tion of bor­row­ings and in­ter­nal funds and com­plete the deals within three months.

BLOOMBERG PIC

Top Glove Corp Bhd says it will be ac­quir­ing a fac­tory from A1 Glove in Ne­gri Sem­bi­lan for RM31.5 mil­lion, while another fac­tory from Titi Glove in Jo­hor for RM7.5 mil­lion.

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