One Glove proposes internal reorganisation of its gloves business

LUMPUR: One Glove Group Bhd (One Glove) announced that it plans to implement an internal reorganisation of its gloves business, including the manufacturing and trading of all types of gloves and related activities.

In a filing with Bursa Malaysia on Wednesday, it said the reorganisation would involve the realignment of the group’s gloves business to focus solely on its existing glove factory in Kamunting, Perak.

One Glove said the reorganisation would include the reallocation of operational resources utilised by One Glove Venture Sdn Bhd (OGVSB) to Onetexx Sdn Bhd, a wholly owned subsidiary of One Glove which operates its Kamunting glove factory, given that OGVSB will not be carrying out the gloves business moving forward.

However, the group said it will retain the 38 per cent equity interest in OGVSB.

“(The group) will cease to have control of the overall management, operations as well as the implementation and achievement of the business plans of OGVSB and promotion of the business of OGVSB moving forward,” it said.

One Glove said the proposed internal reorganisation was made after the board assessed One Glove’s financial standing and the availability of financial resources to finance its portion of equity contribution to carry out OGVSB’s development plan.

“The decision to discontinue OGVSB group’s gloves business was made after assessing the feasibility and the risk-reward of its development plan (taking into consideration the overview of the rubber glove industry in Malaysia,” the group added. — Bernama