SINGAPORE (Oct 24): Top Glove, the manufacturer of gloves, is said to be acquiring the surgical glove operations of Adventa, says industry sources.

“It is possible that Adventa’s surgical glove operations under the Terang Nusa group, which manufactures and distributes surgical and medical gloves, could be a likely acquisition target for Top Glove which is said to be looking for a surgical glove company,” one source told The Edge Financial Daily.

Since the announcement, Adventa’s share price has increased by 25% to 91 sen.

In 2012, Adventa transferred its glove business to Aspion, which is a vehicle of Adventa’s managing director, Low Chin Guan, for a consideration of RM320.9 million ($103.2 million).

After which, Adventa has focused on providing medical services, distributing medical and healthcare equipment as well as providing home dialysis products.

Aspion currently owns four glove firms – Terang Nusa, Purnabina, Adventa Health and Sentienx, according to a company search.

This speculation on Top Glove’s potential acquisition target came after the group’s chairman Lim Wee Chai told the press last week that it will be announcing a major acquisition soon that may cost more than RM1 billion.

According to Lim, the acquisition target would be a Malaysian company that produces both surgical and examination gloves.

Surgical gloves only make up 2% of Top Gloves product mix, according to its 2016 annual report.

Shares in Top Glove has risen about 14% in the past two weeks, trading at $2.08 as at 10.27am.