Top Glove sue Adventa Capital: Things you should know about due diligence

Recently, the market is shocked by the news of Top Glove takes legal action against Adventa Capital. The misrepresentations by Directors of Adventa Capita, allegedly resulted in Top Glove and Top Care agreeing to enter into the share purchase agreement in January this year with ACPL, for the purchase of 270.85 million shares in Aspion for RM1.37bil. Top Glove only aware of the issues after their auditor BDO have conducted due diligence review. In my humble opinion, this is a greatest mistake made by Top Glove, as in how could you enter into an agreement before the due diligence review is conducted? I think it is a great timing to discuss on due diligence now.