KUALA LUMPUR (Oct 6): Kossan Rubber Industries Bhd’s founding Lim family appeared to have sold some of their direct shareholdings in the listed entity to one of the glove-making group’s executive director Tan Kong Chang.

This development comes after Kossan Holdings (M) Sdn Bhd (KHSB), the largest shareholder of Kossan Rubber Industries Bhd, distributed its 14.35% stake in the publicly-listed glove manufacturing company to founding family members, including founder Tan Sri Lim Kuang Sia and three of his siblings, Lim Leng Bung, Lim Kuang Wang, and Lim Kuang Yong. Each of them received 73.22 million shares in the share distribution.

According to Kossan Rubber's bourse filings on Friday, Tan acquired 50 million shares through a direct business transaction from Kuang Sia, Leng Bung, Kuang Wang, and Kuang Yong, with each of them disposing of 10 million shares.

However, the bourse filing did not disclose the seller of the fifth tranche of 10 million shares in Kossan Rubber.

Following the acquisition, Tan's direct shareholding in the listed entity has increased to 1.96% (50 million shares), while it reduced the direct shareholdings of Kuang Sia to 2.75% (70.23 million shares), Leng Bung’s to 2.56% (65.53 million shares), Kuang Wang’s to 2.55% (65.22 million shares), and Kuang Yong’s to 2.51% (64.14 million shares).

According to Kossan Rubber's annual report for 2022, Tan, aged 53, is a key senior management figure who holds the position of Chief Operating Officer in the glove division and serves as an executive director of human resources for the group.

He is responsible for overseeing all expansion and upgrading of manufacturing facilities and the construction of the group’s buildings. Additionally, he supervises several subsidiaries in the glove division.

Shares in Kossan Rubber closed two sen or 1.47% lower at RM1.34, resulting in a market capitalization of RM3.43 billion.