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KUALA LUMPUR (Nov 24): Top Glove Corp Bhd continued to buy its own shares for the eleventh consecutive trading day today, even as it is dealing with a large number of Covid-19 cases within its workforce.
The glove maker revealed in an exchange filing that it repurchased 6.23 million of its shares for RM42.64 million today. The shares were bought at between RM6.80 and RM6.91 per share.
With this, Top Glove has bought back RM1.08 billion in its own shares since September.
Share buybacks so far this month totaled RM721.72 million in shares, while in September the world’s leading manufacturer of rubber gloves bought shares worth RM355 million.
The total number of treasury shares that Top Glove now owns stands at 148.08 million, which translates into a 1.81% stake.
To put this in perspective, this figure equates to 57.67% of Top Glove’s RM1.87 billion net earnings for the financial year ended August 31, 2020 (FY20).
It also represents 88.96% of your cash and cash balances at the end of fiscal year 20, amounting to RM1.21 billion. Top Glove also has RM1.67 billion in investment securities.
In a separate announcement today, the Employee Provident Fund said it has purchased 1.09 million shares of Top Glove, increasing its stake in the group to 534.3 million shares or a 6.64% stake.
Shares of Top Glove closed 55 sen or 7.48% lower at RM6.80 today, valuing the group at RM5.73 billion. 89.73 million shares were traded at the counter.
The share price drop came after the government ordered Top Glove to shut down 28 of its factories in stages to facilitate the Covid-19 detection and quarantine processes.
Today a total of 1,511 new confirmed cases of Covid-19 were detected in the Teratai group, which originated from Top Glove workers’ dormitories in Klang, according to the Health Ministry.
To date, 5,777 individuals from the group have been tested and there are 4,036 positive cases, comprising 3,846 migrant workers and 190 Malaysians.
Read also:
Only 3% of annual revenue lost from 28 factory closures, says Top Glove
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