PETALING JAYA: Top Glove Corp Bhd has taken legal proceedings against Adventa Capital Pte Ltd, in which the former seeks a claim for a sum of not less than RM714.86mil.

According to a Bursa Malaysia filing, the claim arose from a conspiracy to defraud Top Glove and its wholly-owned subsidiary Top Care Sdn Bhd, as well as fraudulent misrepresentations made by vendors and Aspion Sdn Bhd directors Low Chin Guan and Wong Chin Toh.

The misrepresentations resulted in Top Glove and Top Care agreeing to enter into the share purchase agreement in January this year with Adventa Capital, for the purchase of 270.85 million shares in Aspion for RM1.37bil.

On July 2, the Kuala Lumpur High Court had granted an ex-parte Mareva injunction restraining Low Chin Guan and Wong Chin Toh from disposing their assets in Malaysia up to the value of RM714.86mil.

In response to the announcement posted by Top Glove, 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,” said Adventa Capital, in a press release yesterday.

On April 4, Top Glove announced that it has completed the acquisition of Aspion, which would add three manufacturing facilities with 75 lines and a capacity of 4.77 billion pieces of gloves per annum to Top Glove’s operations. Upon the completion of the share purchase agreement, the payment of the cash portion of the purchase consideration was duly rendered and 20.5 million Top Glove consideration shares allotted to the vendor Adventa Capital, making up a total of RM1.37bil. Low, who is also Adventa’s managing director, had been appointed as an executive director of Top Glove on April 4.

Several days later, on April 6 and 9, Low, by virtue of his indirect interest in Adventa Capital, disposed 8 million shares and 2.25 million shares, respectively, in off-market transactions at RM9.70 per share.