PETALING JAYA: Top Glove Corp Bhd, the worldâ€™s largest rubber glove manufacturer, is making a foray into the healthcare business via a joint venture (JV) with DHS Emergency Asia Sdn Bhd.
The JV, when it is up and running, will have a total paid-up capital of RM2mil. Top Glove will provide 75% of the capital, while the rest will come from DHS.
The company, in a filing with Bursa Malaysia, said the investment risk of the project was considered small given its size of capital outlay.
â€œThe JV is a long-term investment plan for the group and would also provide medical facilities to serve the large number of the groupâ€™s employees and the surrounding community,â€ the company said in the filing.
The glove manufacturer said its wholly owned subsidiary â€“ Top Glove Sdn Bhd (TGSB) â€“ had entered into a JV agreement with DHS to establish TG GD Medical Clinic Sdn Bhd.
Top Glove will take up a 75% stake in the JV with the rest belonging to DHS. The principal activity of DHS is to establish and provide sales of diversified health products of all kinds.
â€œTGSB and DHS had mutually agreed that Global Doctors Malaysia will grant the sole and exclusive transferable rights, licence and privilege to use the intellectual property and know-how developed by Global Doctors Malaysia, including the branding, quality standard operating procedures, policies and software which conform with the direction of Global Doctors Malaysia for the proposed JV company for a fee that will be mutually agreeable by both the proposed JV company and Global Doctors Malaysia,â€ Top Glove said.
Top Glove said the proposed JV companyâ€™s board of directors would consist of a maximum of eight directors, with six to be nominated by TGSB and a maximum of two directors nominated by DHS to reflect the shareholding percentage of the parties.
The commencement of business of TG GD is by six months from the date of the JV agreement.
Just last week, Top Glove had announced that it was seeking a secondary listing of its shares on the Main Board of Singapore Exchange Securities Trading Ltd (SGX-ST) by the third quarter of this year.
The proposed secondary listing will not involve the issuance of any new Top Glove shares.
â€œTo create liquidity and trading activity on the Main Board of the SGX-ST, the company intends to explore with its substantial shareholders the possibility of selling a portion of their shareholdings in Top Glove of S$20mil (RM59.4mil) in value in the open market on the Main Board of the SGX-ST,â€ it had said.