Top Glove says the acquisition is expected to provide the Group with synergistic benefits, enabling it to improve its supply chain coordination, thereby allowing for flexible planning and better lead time in relation to the supply of packaging material for its glove products, as well as better costs and quality control. (NSTP File pic by Rosdan Wahid)

KUALA LUMPUR: Top Glove Corporation Bhd is acquiring the entire stake in Eastern Press Sdn Bhd from with YS Hoong Sdn Bhd for RM46.25 million.

In a filing to Bursa Malaysia today, the company said Eastern Press is a major supplier of packaging material to Top Glove group’s operations in Malaysia.

It said the proposed transaction is expected to provide the Group with synergistic benefits, enabling it to improve its supply chain coordination, thereby allowing for flexible planning and better lead time in relation to the supply of packaging material for its glove products, as well as better costs and quality control.

Top Glove said the purchase consideration will be satisfied entirely in cash, which will be funded via bank borrowings and internally generated funds of the Group.