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KUALA LUMPUR (Jan 5): AT Systematization Bhd is suing shareholders of Pearl Glove (Malaysia) Sdn Bhd to recover RM4.4 million, after abandoning its planned purchase of the glove maker.
The group said its subsidiary AT Glove Engineering Sdn Bhd filed the lawsuit against Hai Hong Capital Sdn Bhd, P’ng Sim Guan, P’ng Lai Heng, Hai Hong Holdings Sdn Bhd, and Aaron Khoo Teng Soon in High Court on May 31. December.
AT Systematization said that AT Glove had signed an agreement dated June 26, 2020, with shareholders to buy its shares in Pearl Glove for RM3.44 million. Initially, a deposit of RM 687,800 was paid to the shareholders.
AT Glove also advanced a loan repayment amount of RM3.71 million to Sim Guan, Lai Heng, Hai Hong Holdings and two others for the money that Pearl Glove owes them, the group said.
He said that after AT Glove completed a due diligence exercise on Pearl Glove, the latter was not satisfied with the outcome of the exercise.
“On December 11, 2020, the plaintiff issued a termination notice after further negotiations with the defendants were unsuccessful,” said AT Systematization.
The group said that under the terms of the deal, Pearl Glove shareholders must return all monies paid, including the deposit and loan advance, to AT Glove, after notice of termination.
He added that all attempts to recover the money were futile and therefore legal action was taken.
AT Systematization’s share price fell one sen or 5.41% to 18 sen today, valuing the group at RM736.45 million. Some 191.6 million shares were traded at the counter.
Read also:
AT Systemisation seals an agreement to acquire a manufacturer of industrial gloves for RM22 thousand
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