Top Glove sues Adventa Capital over fraudulent misrepresentations in RM1.37b Aspion deal

PETALING JAYA: Top Glove Corp Bhd is suing Adventa Capital Pte Ltd for an alleged conspiracy to defraud the group as well as fraudulent misrepresentations made by Adventa Capital's directors in relation to the purchase of surgical gloves producer Aspion Sdn Bhd for RM1.37 billion.
Top Glove told Bursa Malaysia that the group and its wholly owned subsidiary Top Care Sdn Bhd have taken legal proceedings against Adventa Capital, ACPL Sdn Bhd, Low Chin Guan and Wong Chin Toh, claiming for a sum of not less than RM714.86 million.
The suits come two months after Top Glove completed the acquisition.
Top Glove alleged that Low and Wong had made fraudulent misrepresentations, which resulted in the group and Top Care agreeing to enter into the share purchase agreement dated January 1, 2018.
On July 2, the Kuala Lumpur High Court granted an ex-parte Mareva injunction restraining Adventa Capital, Low and Wong from disposing of their assets in Malaysia up to the value of RM714.86 million and ACPL up to the value of RM72.3 million until trial or further order. The inter partes hearing of the Mareva application is fixed for July 13.
On the same day, the Singapore High Court also granted an ex-parte Mareva injunction restraining Adventa Capital from disposing of its assets in Singapore or outside of Singapore (save for Malaysia) up to the value of RM714.86 million.
Top Glove said it will make the appropriate announcements to Bursa Malaysia as and when there are material developments in relation to the court's decision.
The Aspion deal was the biggest ever acquisition in Top Glove's history to propel the group to become the largest surgical glove maker globally. It was satisfied with RM1.233 billion cash while the balance via the issuance of 20.51 million new Top Glove shares.
Meanwhile, Adventa Capital has refuted the lawsuit allegations by Top Glove.
“The allegations made by Top Glove against Adventa Capital and its directors in their lawsuits have no merit and are denied. We have full confidence in our legal position and will vigorously defend ourselves against the lawsuits," it said in a statement.
Top Glove's share price closed down 20 sen or 1.6% to RM12.10 on 4.64 million shares done.