Top Glove gets in­terim Mareva in­junc­tion against Ad­venta

The Star Malaysia - StarBiz - - News -

PETALING JAYA: Top Glove Corp Bhd has se­cured an in­terim Mareva in­junc­tion against Ad­venta Cap­i­tal Pte Ltd, its di­rec­tors Low Chin Guan and Wong Chin Toh, and ACPL Sdn Bhd, to stop them from sell­ing their as­sets in Malaysia.

The glove­maker has pre­vi­ously taken le­gal ac­tion against Ad­venta, in which the for­mer sought a claim of not less than RM714.86mil in over­state­ment of as­sets and valu­a­tions.

This is in re­la­tion to al­le­ga­tions of frad­u­lent mis­rep­re­sen­ta­tion re­lat­ing to As­pion Sdn Bhd, a sur­gi­cal glove spe­cial­ist which Top Glove had ac­quired in April 2018.

“The on­go­ing lit­i­ga­tion has not and will not im­pact As­pion’s or Top Glove’s busi­ness op­er­a­tions, which con­tin­ues as usual,” Top Glove said in a fil­ing with Bursa Malaysia.

Fol­low­ing an in­ves­ti­ga­tion, the Top Glove man­age­ment found out that As­pion may not be able to achieve the profit guar­an­teed by Ad­venta, due to in­ac­cu­rate his­tor­i­cal in­for­ma­tion pro­vided ear­lier dur­ing the bid­ding process.

Ad­venta had ini­tially guar­an­teed a profit of RM81mil and RM108mil for As­pion’s fi­nan­cial years end­ing Oct 31, 2018 (FY18) and FY19, re­spec­tively.

Ac­cord­ing to a Bursa Malaysia fil- ing, the claim arose from a con­spir­acy to de­fraud Top Glove and its wholly-owned sub­sidiary Top Care Sdn Bhd, as well as fraud­u­lent mis­rep­re­sen­ta­tions made by ven­dors and As­pion di­rec­tors Low and Wong.

The Mareva in­junc­tion, which serves to freeze and pre­vent dis­si­pa­tion of the de­fen­dants’ as­sets world­wide, was based on fresh ev­i­dence that was re­cently ob­tained, which was not avail­able when the pre­vi­ous in­junc­tion ap­pli­ca­tions were heard.

The new ev­i­dence has been pre­sented in the Sin­ga­pore pro­ceed­ings filed against Ad­venta. A Mareva in­junc­tion ap­pli­ca­tion was also filed in aid of the pend­ing ar­bi­tra­tion pro­ceed­ings against Ad­venta at the Sin­ga­pore In­ter­na­tional Ar­bi­tra­tion Cen­tre.

On July 2, the Kuala Lumpur High Court had granted an ex-parte Mareva in­junc­tion re­strain­ing Low and Wong from dis­pos­ing of their as­sets in Malaysia up to the value of RM714.86mil.

Pre­vi­ously, Top Glove had its in­junc­tion order against Ad­venta set aside for “fail­ure to make full disclosure of ma­te­rial mat­ters.”

Ear­lier on July 23, Top Glove also filed a po­lice re­port against Low and Wong to fa­cil­i­tate fur­ther in­ves­ti­ga­tions into this mat­ter.

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