Careplus acquires remaining stake in Careglove

PETALING JAYA: Glove maker Careplus Group Bhd will take full control of Careglove Global Sdn Bhd by acquiring the remaining 49.99% equity interest in the company for Rm24mil cash.

The group said it had entered into a conditional share purchase agreement with AJJ Holding Inc and Descarpack Descartaveis Do Brasil Ltda for the acquisition of the remaining 317,122 Careglove shares.

In a filing with Bursa Malaysia, Careplus said the proposed acquisition represented an opportunity for the group to increase its equity interest and gain full control of Careglove, including the overall operations and future business direction.

This, it said, included the expansion of Careglove’s business into other markets outside Brazil.

It added that the proposed acquisition was in line with Descarpack’s decision to exit the manufacturing business and focus on its core operations of selling and distribution of hospital materials to hospitals in the Brazilian market.

“Descarpack and Careglove are committed to ensure that the business remains viable for the Brazilian market via the gloves supply agreement, which will be entered into upon completion of the proposed acquisition,” it said in the filing.

Careplus currently owns 50.0002% equity interest in Careglove. Careglove was incorporated as a unit of Careplus in February 2011.

Following to a joint-venture agreement entered into between Careplus and Descarpack later that year, Careglove underwent a shareholding restructuring.

This resulted in Careplus holding slightly over 50% and Descarpack with 49.99% equity interest.

Descarpack later transferred its entire shareholdings in Careglove to AJJ via a deed of novation and variation.

AJJ is a company owned by Descarpack’s ultimate controlling shareholder.

Careglove is a manufacturer, commission agent, distributor, importer and exporter of all types of hand-gloves.