Acquisition Of Shares In Great Glove ( Thailand) Co., Ltd

TOP GLOVE CORPORATION BHD

TypeAnnouncement
SubjectAcquisition Of Shares In Great Glove ( Thailand) Co., Ltd

Contents :

Top Glove Corporation Bhd ( the “company”)


Re: Acquisition Of Shares in Great Glove (Thailand) Co., Ltd.


1. Introduction

We wish to announce that Top Glove Sdn Bhd, a wholly owned subsidiary of the Company has on 1st August 2001 acquired 2,220,000 ordinary shares of BHT10.00 each for a total consideration of Thai Baht 22,200,000.00 ( equivalent to approximately RM1,955,820.00 at an exchange rate of BHT100=RM8.81) , representing 74% of the entire authorised and issued share capital of Great Glove ( Thailand) Co., Ltd.

2) Information On Great Glove (Thailand) Co., Ltd

Great Glove (Thailand) Co., Ltd was incorporated in Phuket, Thailand on 1st August 2001 with an authorised and issued share capital of BHT30,000,000.00 comprising 3,000,000.00 ordinary shares of BHT10.00 each.
Following the said acquisition, the shareholders of Great Glove ( Thailand ) Co., Ltd are as follows:
NameNationality/ Country
of Incorporation
No. of Ordinary Shares%
1)Top Glove Sdn BhdMalaysia2,220,00074%
2)Paratex Product Co., LtdThailand 360,00012%
3)Von Bundit Co LtdThailand 420,00014%
Total3,000,000100%



The principal activity of Great Glove ( Thailand) Co., Ltd is to carry on the business as gloves manufacturer.

3) Rationale For The Acquisition

The Company is venturing into Thailand to tap the advantages of lower manufacturing cost in terms of raw materials, production labour and operating cost in general.

4) Sources Of Fund

The funding requirement of the said acquisition will be provided by internally generated funds.



5) Effects Of The Acquisition

The said acquisition will have no material effect on the earnings of the Company for the current financial year ended 31st August 2001. However, barring any unforeseen circumstances, the acquisition is expected to contribute positively to the future earnings of the Group.

6) Directors & Substantial Shareholder’s Interest

The directors of Great Glove ( Thailand) Co., Ltd are:
a. Mr Lim Wee Chai ( Malaysian)
b. Madam Tong Siew Bee ( Malaysian)
c. Mr Lee Kim Meow ( Malaysian)
d. Mr Lee Hooi Hong ( Malaysian)
e. Dr. Pongsak Kervongbundit ( Thai)

Mr Lim Wee Chai and Madam Tong Siew Bee are directors of Top Glove Sdn Bhd and the company.

Other than the above, none of the directors of Top Glove Corporation Bhd or persons connected to them, has any interest, direct or indirect, in the acquisition.
The Board is not aware of any substantial shareholders or persons connected to them having any interest, direct or indirect, in the said acquisition

7) Approval Of Shareholders And Authorities

No approval from the shareholders of the Company is required for the said acquisition.

The Company has received approval from Bank Negara Malaysia for the foreign investment remittance.

8) Statement By The Board Of Directors

The Board Of Directors is of the opinion that the said acquisition is in the best interest of the Company and its shareholders.



Announcement Info

Company NameTOP GLOVE CORPORATION BHD  
Stock Name TOPGLOV    
Date Announced8 Aug 2001  
CategoryGeneral Announcement
Reference NoTG-010808-51989