November 13, 2021

Top Glove Wants To Buy Back Stocks, What's This Sign?

 Top glove is proposing a reform to their company's share repurchase power clause which will be fully generated by retained profit amounting to RM2.49 billion as at 31 August 2021.

Citing a statement from Top Glove's managing director, Datuk Lee Kim Meow, the renewal of the repurchase power clause will be generated by Top Glove's own internal funds and external loans.

Top Glove is currently in the process of seeking permission from their shareholders on the renewal of the power clause which will allow them to ‘buy their own shares or hold them as treasury shares of which they represent 10% of the total shares issued’.

Furthermore, they will ensure that all amounts obtained from internal parties and/or external loans will be fully utilized only after obtaining the consent of investors.

He added that if Top Glove buys their shares through external loans, they will ensure that the company has sufficient funds to repay the value of the loan so that it will not affect the company's cash flow.

Top Glove informed that the number of Top Glove shares that can be purchased and held will not exceed 820.7 million based on the number of issued shares of the company which has been set for its commencement date on 27 October 2021.

Meanwhile, as at 12.30pm on Friday, Top Glove shares were up 12 sen or 5.22% to RM2.42.

Top Glove traded between RM2.32 and RM2.52.