KUALA LUMPUR, Malaysia (June 29): Nylex (Malaysia) Bhd’s board of directors has approved Ancom Bhd’s offer to buy all of Nylex’s assets and liabilities for RM179.3 million. Both parties will hold extraordinary general meetings (EGMs) to seek permission from their respective shareholders.
In a statement, Ancom group CEO Lee Cheun Wei said, “The proposed acquisition would result in Ancom becoming one of the most integrated agrichemical and industrial chemical players in the region, creating a much larger and stronger chemical group with interest spanning across agrichemical and industrial chemical business in Malaysia as well as the world market.”
“We see this as a win-win situation because, upon conclusion of the proposed purchase, Nylex’s owners will get part cash and part Ancom shares via a capital reduction and repayment exercise, allowing them to continue participating in the larger group’s growth,” he added.
By the fourth quarter of 2021, the anticipated transaction should be completed.
Nylex will be classified as a cash company with no core business after the proposed acquisition is completed, and the company will be required to submit a proposal to the Securities Commission Malaysia (SC) for the regulator’s approval to acquire a new core business within 12 months of being classified as a cash company.
On April 28, Ancom announced the proposed acquisition, which would be offset by its 50.3 percent investment in Nylex.
The group earlier stated that a balance of RM96.7 million of the entire purchase consideration will be satisfied by paying RM50 million in cash and the remaining RM46.7 million will be satisfied by issuing 31.1 million new shares at RM1.50 each.
Datuk Siew Ka Wei is a common shareholder in both Ancom and Nylex. As of June 18, he possessed a 53.8 percent indirect interest in Nylex and a 2.2 percent direct interest.
As of June 25, Siew owned a direct ownership of 12.4% and an indirect share of 9.3% in Ancom.
Ancom shares were one sen or 0.67 percent lower at RM1.49 at noon break, giving the company a market capitalization of RM375.5 million. Nylex closed at 83.5 sen, down 0.5 sen or 0.6 percent, for a market capitalization of RM162.27 million.
Also see: Ancom proposes to buy the remaining Nylex stock, according to the company. The report “The Edge” Ancom has made an offer to buy Nylex’s assets and liabilities, according to a source. Continue reading
