3 months post-acquisition, Top Glove discovered discrepancies on inventory and asset. Therefore arising evidence that Adventa Capital Pte Ltd had misrepresented Aspion's financial performance (i.e. assets and profitability).
Top Glove has chosen to be transparent and to take corrective action plans following our legal team's finding to consider a better fair value deal and improve the profit. More importantly, to present a fair and accurate view of the situation.
The claim amount of RM714.86 million is predicated on the premium paid as a P/E multiple on the purchase price of Aspion vs projected future earnings. Nonetheless, this litigation initiated by Top Glove has no impact on Aspion's operations. Top Glove team has a free hand to manage Aspion now and with Top Glove's vast experience in process efficiency, production at the Aspion factories will be optimised.
Top Glove's operations remain resilient and scalable with a positive and healthy cashflow. Henceforth, this litigation has little impact on the overall group financials.
Top Glove had obtained a Mareva Injunction to freeze the defendants' assets, movable and immovable on Malaysia and Singapore to safeguard its interests.