Top Glove gets interim Mareva injunction against Adventa

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PETALING JAYA: Top Glove Corp Bhd has secured an interim Mareva injunction against Adventa Capital Pte Ltd, its directors Low Chin Guan and Wong Chin Toh, and ACPL Sdn Bhd, to stop them from selling their assets in Malaysia.

The glovemaker has previously taken legal action against Adventa, in which the former sought a claim of not less than RM714.86mil in overstatement of assets and valuations.

This is in relation to allegations of fradulent misrepresentation relating to Aspion Sdn Bhd, a surgical glove specialist which Top Glove had acquired in April 2018.

“The ongoing litigation has not and will not impact Aspion’s or Top Glove’s business operations, which continues as usual,” Top Glove said in a filing with Bursa Malaysia.

Following an investigation, the Top Glove management found out that Aspion may not be able to achieve the profit guaranteed by Adventa, due to inaccurate historical information provided earlier during the bidding process.

Adventa had initially guaranteed a profit of RM81mil and RM108mil for Aspion’s financial years ending Oct 31, 2018 (FY18) and FY19, respectively.

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 directors Low and Wong.

The Mareva injunction, which serves to freeze and prevent dissipation of the defendants’ assets worldwide, was based on fresh evidence that was recently obtained, which was not available when the previous injunction applications were heard.

The new evidence has been presented in the Singapore proceedings filed against Adventa. A Mareva injunction application was also filed in aid of the pending arbitration proceedings against Adventa at the Singapore International Arbitration Centre.

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

Previously, Top Glove had its injunction order against Adventa set aside for “failure to make full disclosure of material matters.”

Earlier on July 23, Top Glove also filed a police report against Low and Wong to facilitate further investigations into this matter.