Top Glove unit to buy 2 factories
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.
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.