KUALA LUMPUR (June 29): Loss-making precision engineering and industrial automation firm AT Systematization Bhd soared 31.82% at mid-morning trade today following announcement that it is acquiring an industrial glove maker.
As at 10.31am, shares in AT Systematization rose 3.5 sen to 14.5 sen, bringing the market capitalisation of the group to RM239 million. It saw some 288.14 million shares traded, exceeding its 200-day average volume at 39.88 million.
It was the most actively traded counter in the early trading session today.
To recap, the group said in a filing with Bursa Malaysia last Friday that it was acquiring glove maker Pearl Glove Sdn Bhd (PGSB) for RM22 million cash.
It said the vendors were Hai Hong Capital Sdn Bhd, P'ng Sim Guan, P'ng Lai Heng, Hai Hong Holdings Sdn Bhd and Aaron Khoo Teng Soon for the proposed acquisition.
The group noted that the immediate outlook for PGSB's existing business as a trusted and tested OEM/ODM manufacturer of safety gloves is extremely positive as the demand for industrial safety gloves increases proportionally with improving workplace and safety practices globally.
Besides, the group said it intends to venture into the business of manufacturing medical gloves in three years' time following the proposed acquisition.