Comfort Gloves' majority shareholder sells off stake

KUALA LUMPUR (Sept 4): Comfort Gloves Bhd's largest shareholder Brian Lau Joo Kien has sold a 14.41% stake in the company despite high expectations of exponential earnings growth in the rubber glove manufacturing industry as the Covid-19 pandemic has resulted in strong demand for personal protective equipment, including disposable rubber gloves.

Comfort Gloves is not the only one that has seen its controlling shareholder sell off stakes as share prices escalate.

The Lim family, which controls Kossan Rubber Industries Bhd, has been trimming its stake in the glove manufacturing firm. The latest transaction was done last Friday to dispose of some 8.38 million shares. Between April 17 and Aug 28, the Lim family sold about 55.03 million shares in Kossan held by Kossan Holdings (M) Sdn Bhd.

Back to Comfort Gloves, Joo Kien's investment vehicle Keen Setup Sdn Bhd disposed of 84 million shares, equivalent to a 14.41% stake, on Wednesday, the company's filing with Bursa Malaysia showed.

The filing did not reveal the transaction price for the shares sold.

After the share sale, Joo Kien is left with 150,000 shares or a 0.026% stake in Comfort Gloves, whose share price has reversed its upward trend in recent weeks.

Joo Kien emerged as a substantial shareholder of Comfort Gloves in January 2015 after he purchased some 68.5 million shares or an 11.75% stake. The glove manufacturer's share price was then trading at around 60 sen level compared with today's closing price of RM4.26. Comfort Gloves' share price hit an all-time high of RM6.76 early last month. The stock has gained 439% year to date.

The company's earlier filings showed that Joo Kien accumulated about 15.65 million shares between May and August this year in three blocks of transactions.

Joo Kien is a son of Datuk Lau Eng Guang from the Lau family that controls Leong Hup International Bhd. Joo Kien's brother Lau Joo Yong is an executive director of Comfort Gloves while his cousin Lau Joo Pern is non-executive director of Comfort Gloves.

Joo Yong owned a direct interest of 6.33% or 36.88 million shares in Comfort Gloves as at Aug 14, while Eng Guang holds a direct interest of 3.68% or 21.43 million shares and an indirect interest of 14.41% or 84 million shares via Keen Setup.