Short Position - Tropicana’s glove share buy

First up is the glaring presence of Tan Sri Lim Wee Chai in this deal. Lim is the founder and controlling shareholder of Top Glove with a 26% stake. But in 2017, Lim acquired just over 10% of Tropicana Corp from the latter’s founder and controlling shareholder namely Tan Sri Danny Tan Chee Sing, spending at estimated RM140mil in that deal.

Tropicana’s glove share buy

Tropicana Corp Bhd is a well-established property developer in Malaysia, being in the business for more than two decades and having pioneered residential resort-style living. But its recent purchase of RM78.47mil worth of shares in Top Glove Corp Bhd is surprising, to say the least.

Is this the best use of money for a property developer and it can hardly be argued that buying into a rubber glove maker is synergistic with Tropicana Corp’s core business of property development.