Hextar, Ong explain rationale of RM1.80 offer price for Rubberex

Rubberex factory

KUALA LUMPUR: Hextar Rubber Sdn Bhd and Datuk Ong Choo Meng, who offered RM1.80 per share in their takeover of Rubberex Corp (M) Bhd, explained that there was concern among them and the sellers about the surge in the glove maker's share price.

In the circular to Rubberex shareholders on Monday, Hextar Rubber and Ong – the joint offerors -- said the rapid increase in the price of small-cap glove maker Rubberex shares in reaction to the Covid-19 pandemic, “may not be sustainable in the long run”.

“Further, certain stockbrokers had also imposed share margin caps on the trading of glove counters including Rubberex on June 2,2020 as a result of these concerns, ” the joint offerors said.