Tropicana sells 1.85 million Top Glove shares at a loss


KUALA LUMPUR: Property firm Tropicana Corp Bhd has sold 1.85 million shares in Top Glove Corp Bhd in the open market for RM9.98mil.

The company told Bursa Malaysia on Friday that average cost of the investment was RM12.586mil.

"The disposal was undertaken in order to minimise losses as the market price of Top Glove shares has recovered marginally since early 2021," Tropicana said.

"Also, as the roll out of the vaccine is expected to improve the recovery prospects of the economy and thus the property sector in the near future," it said.

Following the disposal, Tropicana's stake in Top Glove was reduced to 12.47 million shares, or 0.16% of the company as of April 15.

Tropicana said it will intensify property development activities in strategic landbanks.

"The disposal will also generate working capital for property development activities that will contribute to positive earnings," it added.

The disposal was expected to decrease Tropicana’s earnings by approximately RM2.6mil or 0.2 sen per share, for the financial year ending Dec 31, 2021.

Top Glove's executive chairman and substantial shareholder Tan Sri Dr Lim Wee Chai, who is also chairman and a major shareholder in Tropicana has abstained and will continue to abstain from all deliberations and voting in relation to the disposal, Tropicana said.

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Tropicana Corp , Top Glove

   

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