Top Glove injunction order set aside

PETALING JAYA: Top Glove Corp Bhd, which is taking legal action against Adventa Capital Pte Ltd (ACPL) for alleged fraud, has had its injunction order against the latter set aside for “failure to make full disclosure of material matters.”

In a filing with Bursa Malaysia yesterday, the company said the ex-parte Mareva Order it had obtained on July 2 to freeze the assets of Wong Chin Toh, Low Chin Guan and ACPL had been “discharged and removed.”

“The inter partes hearing for both applications are now fixed on July 19,” it said.

Last week, Top Glove announced in a filing with the local bourse that a legal claim had arisen from a conspiracy to defraud Top Glove and its wholly-owned subsidiary Top Care Sdn Bhd – as well as fraudulent misrep- resentations made by vendors and Aspion Sdn Bhd directors Low Chin Guan and Wong Chin Toh.

The misrepresentations allegedly resulted in Top Glove and Top Care agreeing to enter into the share purchase agreement in January this year with ACPL, for the purchase of 270.85 million shares in Aspion for RM1.37bil. On July 2, the Kuala Lumpur High Court had granted an ex-parte Mareva injunction restraining Low and Wong from disposing their assets in Malaysia up to the value of RM714.86mil.

In response to the announcement posted by Top Glove, ACPL refuted the lawsuit allegations by Top Glove. On April 4, Top Glove announced that it has completed the acquisition of Aspion, which would add three manufacturing facilities with 75 lines and a capacity of 4.77 billion pieces of gloves per annum to Top Glove’s operations.

Upon the completion of the share purchase agreement, the payment of the cash portion of the purchase consideration was duly rendered and 20.5 million Top Glove consideration shares allotted to the vendor ACPL, making up a total of RM1.37bil. Low, who is also ACPL’s managing director, had been appointed as an executive director of Top Glove on April 4.

Several days later, on April 6 and 9, Low, by virtue of his indirect interest in ACPL, disposed of 8 million shares and 2.25 million shares respectively in off-market transactions at RM9.70 per share.

Shares of Top Glove finished one sen lower at RM9.89 yesterday after it touched an intra-day low of RM9.33.