Ancom proposes to buy up remaining Nylex stake, confirms The Edge report

KUALA LUMPUR (April 28): Ancom Bhd has proposed to acquire all the assets and liabilities of Nylex (Malaysia) Bhd for RM179.3 million.

In a statement, Ancom said it had submitted a formal offer to the board of Nylex, confirming a report by theedgemarkets.com this morning.

“As Ancom currently holds approximately 50.3% in Nylex, this will be set off against its entitlement under the proposed distribution.

“Accordingly the net consideration for the proposed acquisition payable by Ancom will be RM96.7 million (net purchase consideration), which is for the remaining 49.7% stake it does not currently own.

“The net purchase consideration shall be satisfied via payment of RM50 million in cash (cash consideration), with the balance RM46.7 million fulfilled through issuance of 31.1 million new Ancom shares at an issue price of RM1.50 per share (consideration shares),” it said.

Following the acquisition, Nylex will retain RM15 million cash in Ancom, while the remaining RM81.7 million will be distributed to other shareholders of Nylex besides Ancom via a capital reduction and repayment exercise of RM35 million cash distribution and RM46.7 million via the consideration shares at a date to be fixed later.

More to come