Top Glove unit buys 1.5 acres Bukit Raja land for RM20.26m

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KUALA LUMPUR (Apr 20): Top Glove Properties Sdn Bhd, a wholly-owned subsidiary of Top Glove Corp Bhd has offered to acquire a 1.5 acre plot of commercial land in Bukit Raja, Selangor, from Century Total Logistics Sdn Bhd, a wholly-owned subsidiary of Century Logistics Holdings Bhd, for RM20.26 million.

"Barring any unforeseen circumstances, the sales and purchase agreement for the proposed acquisition is expected to be signed within 21 days from the date of signing acceptance by the vendor (17 April, 2015); and further announcement will be released upon signing the SPA," said Top Glove (fundamental:2.5; valuation: 1.3) in a Bursa Malaysia filing today. 

"The board of directors, having considered all aspects of the proposed acquisition, are of the view that it is in the best interest of the Top Glove Group and that the proposed acquisition is fair, reasonable, on normal commercial terms, and is not detrimental to the interest of the minority shareholders," it added.

The rationale for the purchase, however, was not disclosed. 

Top Glove shares ended five sen higher at RM5.50 today, for a market capitalisation of RM3.4 billion. 

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)