KUALA LUMPUR (Nov 11): AT Systematization Bhd, whose shares price surged 42.11% or eight sen to 27 sen today, said its RM22 million planned acquisition of industrial glove maker Pearl Glove Sdh Bhd has fallen through.
In a statement, it said it has terminated the share sale agreement it inked in June with the vendors 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 purchase, due to the non-fulfilment of certain conditions. However, it did not elaborate what these conditions were.
Following the purchase cancellation, AT Systematization said it will be focusing on building up its own glove production capacity via the establishment of a new plant in Perak.
"This focus is expected to enable its glove manufacturing plant to be established in a mere five months period, as compared to the average period of one-year which is typically required for a glove manufacturing facility to be completed and commissioned,” the firm's statement read.
"Despite the setback in relation to the proposed acquisition of Pearl Glove, the group said we remain committed to accelerate the completion of our glove manufacturing plant in Perak, through which we target to see the delivery of our first batch of nitrile gloves by the end of this year. This would enable revenue contribution from the new glove business in the current financial year of 2021 (FY21),” said AT Systematization's managing director Choong Lee Aun.
Choong said the firm's investment and growth strategy are supported by the continued strong demand for gloves, adding that the company has received "overwhelming response and enquiries for orders from foreign and local buyers, even before the start of production".
AT Systematization, which was the most actively-traded stock yesterday with 1.67 billion shares done, again topped the actives list today with a trading volume of 2.83 billion shares, which account for 27.77% of the total 10.19 billion shares traded on Bursa Malaysia for the day.
At 27 sen apiece, AT Systematization now has a market capitalisation of RM878.34 million.