AT Systematization sues the shareholders of the glove firm to recover the money after canceling the acquisition

KUALA LUMPUR (January 5): AT Systematization Bhd is suing the shareholders of Pearl Glove (Malaysia) Sdn Bhd to recover RM4.4 million, after abandoning its planned purchase of the glove maker.

The group said its subsidiary AT Glove Engineering Sdn Bhd filed the lawsuit against Hai Hong Capital Sdn Bhd, P’ng Sim Guan, P’ng Lai Heng, Hai Hong Holdings Sdn Bhd and Aaron Khoo Teng Soon in the High Court on March 31. december.

AT Systematization said that AT Glove had signed an agreement dated June 26, 2020 with shareholders to purchase their shares in Pearl Glove for RM3.44 million. A deposit of RM687,800 was initially paid to shareholders.

AT Glove also advanced a loan repayment amount of RM3.71 million to Sim Guan, Lai Heng, Hai Hong Holdings and two others for money owed to them by Pearl Glove, the group said.

He said that after AT Glove completed a due diligence exercise on Pearl Glove, the latter was not satisfied with the outcome of the exercise.

“On December 11, 2020, Plaintiff issued a notice of termination after further negotiations with Defendants were unsuccessful,” said AT Systematization.

The group said that under the terms of the agreement, Pearl Glove shareholders must return all monies paid, including the deposit and loan advance to AT Glove, after notice of termination.

He added that all attempts to recover the money were futile and therefore legal action was taken.

AT Systematization’s share price fell one sen or 5.41% to 18 sen today, valuing the group at RM736.45 million. The counter saw some 191.6 million shares traded.

Also read:
AT Systemisation seals deal to acquire industrial glove manufacturer for RM22k

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