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KUALA LUMPUR (December 10): After Top Glove Corp Bhd’s massive share buyback exercise since September, its chairman, Tan Sri Lim Wee Chai, took over by buying 4.28 million shares in his own capacity.
The shares were purchased in two transactions yesterday and today, but the transaction prices were not disclosed at Top Glove’s filing with Bursa Malaysia today.
After the purchase, Lim has a direct stake of 26.13% in the world’s largest glove manufacturer, plus an indirect stake of 8.63%.
Top Glove shares closed today up 15 sen or 2.19% at RM6.99, with a market capitalization of RM57.29 billion.
So far this year, the counter has increased by more than 350%, even after losing part of its profit since the end of October following the news of the development of Covid-19 vaccines.
The company has spent around RM1 billion to absorb its own shares since September.
Tropicana Corp Bhd, which is also chaired by Lim, also bought Top Glove shares worth RM78.47 million last week. Lim has an 11.07% stake in Tropicana.
Due to this transaction, Bursa Malaysia had asked Tropicana to justify the reasons behind the group purchases of 11.25 million Top Glove shares, given that the business is different from Tropicana’s core activities.
Tropicana responded by saying that the acquisitions were carried out as part of its investment strategy to capitalize on Top Glove’s robust growth potential. The company said Lim had voluntarily abstained from deliberating and voting on the acquisitions.
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