Gets Global inks HOA for glove business acquisition

Gets Global inks HOA for glove business acquisition

12 Apr 2021

KUALA LUMPUR (April 12): Loss-making bus operator Gets Global Bhd has entered into a heads of agreement (HOA) with BT Capital Sdn Bhd for a potential acquisition of an equity stake in Great Stylish Venture Sdn Bhd (GSVSB) to expand its glove business.

BT Capital has approximately 100% direct equity interest in GSVSB.

In a filing with Bursa Malaysia today, Gets said the purchase consideration for the proposed acquisition shall be determined at a later date which will be satisfied via a combination of cash and/or issuance of shares or other securities at an issue price of RM1.90 each.

“The issue price represents a discount of approximately 9.95% to the five-day VWAP (volume weighted average price) of Gets shares up to and including April 9, 2021, being the last trading day prior to the execution of the HOA, of RM2.11,” said the group.

BT Capital and GSVSB are principally involved in investment holding.

GSVSB’s 100%-owned subsidiary Stylish Technology Sdn Bhd (STSB) is principally involved in property investment, oil palm planting, manufacturing and trading of gloves as well as medical and non-medical personal protective equipment.

GSVSB currently has one active business segment in the cultivation and harvesting of oil palm fruits, conducted by STSB through its oil palm plantations with a combined area of about 333 acres (planted area measuring about 200 acres), located in Larut Matang and Selama districts in Perak.

The shareholders and directors of BT Capital and GSVSB are Low Bok Tek, Low Siew Hoon, and Low Khai Loon.

Via the acquisition of GSVSB, Gets said the proposed acquisition represents a strategic opportunity for it to expand its glove business as the group has obtained shareholders’ approval for the glove diversification.

“Barring any unforeseen circumstances and premised on the above, the proposed acquisition is expected to grow the glove business of Gets and contribute positively to the financial performance of Gets and its subsidiaries in the future, thus enhancing Gets shareholders’ value in the medium to long term,” said the group.

The company said UOB Kiay Hian Securities (M) Sdn Bhd has been appointed the adviser for the proposed acquisition.

Shares of Gets almost hit limit up today, jumping 26.17% or 56 sen to close at RM2.70 with some 5.63 million shares exchanging hands. This values the group at RM766.8 million.

Source: The Edge Markets