KUALA LUMPUR – Tropicana Corporation Bhd has clarified that the total net consideration for the total cumulative shareholding of 11.251 million Top Glove shares as at December 2 is approximately RM73.06 million.
In a reply to Bursa Malaysia’s query today, Tropicana said its indirect wholly owned subsidiary, Desiran Realiti Sdn Bhd, transacted in Top Glove’s ordinary shares via a series of open market transactions, such that its total cumulative shareholding in the glove manufacturer as at December 2 was 11.251 million, representing a 0.14% stake.
“The total net consideration for the total cumulative shareholding of 11.251 million Top Glove shares as at December 2 was approximately RM73.06 million instead of RM78.47 million as announced to Bursa on December 3.”
The company said Tan Sri Lim Wee Chai is deemed an interested party in the acquisitions by virtue of him being chairman and major shareholder of Tropicana, as well as executive chairman and major shareholder of Top Glove.
As such, it said, he abstained, and will continue to abstain, from all deliberations and voting in relation to the acquisitions.
It said the acquisitions were undertaken as part of Tropicana’s investment strategy to capitalise on the potential robust growth of Top Glove, given the favourable long-term prospects of the sector due to the Covid-19 pandemic and growth of the global healthcare services industry.
“The company has chosen to invest in Top Glove instead of other glove companies, as Top Glove is the world’s largest manufacturer of gloves. It currently captures approximately 26% of the world market share for rubber gloves.
“Top Glove has also demonstrated steady growth, with a compound annual growth rate of 23.1% for revenue and 28.2% for profit after tax over the past 20 years.” – Bernama, December 7, 2020
