KUALA LUMPUR (Jan 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 wholly-owned subsidiary AT Glove Engineering Sdn Bhd filed the suit against Hai Hong Capital Sdn Bhd, P’ng Sim Guan, P’ng Lai Heng, Hai Hong Holdings Sdn Bhd and Aaron Khoo Teng Soon at the High Court on Dec 31.
AT Systematization said AT Glove had signed an agreement dated June 26, 2020, with the shareholders to purchase their shares in Pearl Glove for RM3.44 million. A deposit of RM687,800 was initially paid to the 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 monies owed to them by Pearl Glove, the group said.
It said that after a due diligence exercise was completed on Pearl Glove by AT Glove, the latter was unsatisfied with the result of the exercise.
“On Dec 11, 2020, a termination notice was issued by the plaintiff after further negotiations with the defendants were unsuccessful,” said AT Systematization.
The group said that under the terms of agreement, Pearl Glove’s shareholders are to return all money paid including the deposit and loan advance to AT Glove, after the termination notice.
It added that all attempts in the recovery of the money were futile and thus 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.