Aspen explains delay in retraction over gloves supply deal

Aspen Holdings has responded to Singapore Exchange (SGX) queries about the delay in disclosing that an agreement with Honeywell had not yet been consummated.

It came after the firm retracted announcements that it had clinched a US$210 million (S$278 million) gloves supply order from Honeywell.

Aspen informed the SGX yesterday that it had received what it believed to be the final Honeywell agreement on April 10, "after months of negotiations dating back to October 2020".

Its Aspen Glove unit had "duly executed" the agreement on April 12, believing that Honeywell's execution "was imminent", given that this was noted as the effective date.

Announcements of the agreement were made on the morning of April 13.

But Aspen said Honeywell informed it on April 14 of "the communication oversight" and that it had not executed the agreement, noting that there were internal approvals required before that could occur.

The SGX queried why it had taken 11 days to retract the initial announcement from the time it was filed. Aspen clarified that the retraction was made within eight working days.

The group added that most of the communication turnaround between Aspen and Honeywell took more than 24 hours due to the 12-hour time difference between Malaysia, where Aspen is based, and the United States, where Honeywell is based.

Aspen said it prepared its retraction announcement after receiving clarification from Honeywell. The announcement was approved by Honeywell last Saturday, the day Aspen filed it with the SGX.

The firm also affirmed that the contract was deemed a material event requiring disclosure, given the US$210 million value. It said the agreement would have been "price-sensitive information which would be likely to materially affect the price or value of the company's securities".

THE BUSINESS TIMES