KUALA LUMPUR (March 22): Top Glove Corp Bhd, the world largest rubber glove maker, is forming a joint venture (JV) with DHS Emergency Asia Sdn Bhd to provide clinical and specialist medical services in Malaysia.
In a filing with Bursa Malaysia today, Top Glove said its wholly-owned subsidiary Top Glove Sdn Bhd (TGSB) has entered into a JV agreement with DHS today, which will see the JV partners acquiring TG GD Medical Clinic Sdn Bhd as the JV company.
The filing disclosed that the ultimate equity structure of the JV is 75% TGSB and 25% DHS.
Top Glove also revealed that TGSB 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 (IP) and know-how developed by the hospital chain for a fee that will be mutually agreed on by both parties.
The IP and know-how includes branding, quality standard operating procedures, policies and software that conform to the direction of Global Doctors Malaysia.
Pursuant to the acquisition of TG GD, it will have a maximum of eight directors, of which six will be nominated by TGSB and two nominated by DHS to reflect their shareholdings.
Top Glove said the anticipated commencement of business of TG GD is six months from the date of the JV agreement.
“The JV is a long-term investment plan for the group and would also provide medical facility to serve the large number of the group’s employees and the surrounding community,” the filing read.
Top Glove shares fell 19 sen or 3.63% to RM5.04 today, valuing it at RM6.27 billion ($2.1 billion).
