Top Glove enters into term sheet to acquire Aspion
KUALA LUMPUR: Top Glove Corp Bhd has entered into a term sheet to negotiate definitive agreements to acquire Aspion Sdn Bhd.
In a statement today, Top Glove said, upon completion of the proposed transaction, it would emerge as the world’s largest surgical glove manufacturer.
The purchase consideration would be satisfied via a combination of cash and the issuance of new ordinary shares in the company, it said.
“The new shares to be issued will comprise not more than 10 per cent in value of the purchase consideration,” it said.
Top Glove executive chairman, Tan Sri Dr Lim Wee Chai, said the proposed acquisition was well-aligned with the company’s strategy of growth and product diversification.
“We are confident the resulting significant synergies, economies of scale and enlarged market presence will strengthen the group’s growth profile and bring greater long-term value to our stakeholders.
“The combined capabilities within the enlarged group will also support sustainable and higher growth and profitability in a fast-growing global healthcare industry,” he said.
He said the proposed transaction envisaged that Aspion managing director, Low Chin Guan, would continue to helm the company’s operations together with his management team.
“Aspion’s employees, customers, suppliers and key stakeholders would also be retained towards business continuity and enabling positive synergies for the enlarged group,” he said. — Bernama