KUALA LUMPUR (June 29): The board of Nylex (Malaysia) Bhd has accepted Ancom Bhd’s offer to acquire all of the former’s assets and liabilities for RM179.3 million. 

Both parties will be seeking the approval of their respective shareholders at extraordinary general meetings (EGMs) to be convened.

“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 world market,” said Ancom group CEO Lee Cheun Wei in a statement.

“We regard this a win-win exercise, as Nylex’s shareholders would receive part cash as well as part Ancom shares via capital reduction and repayment exercise upon completion of the proposed acquisition, thereby allowing them to continue participating in the growth of the enlarged group,” he added.

The proposed acquisition is expected to be completed by the fourth quarter of 2021.

Upon completion of the proposed acquisition, however, Nylex will be classified as a cash company with no core business, therefore 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 from the date of being classified as a cash company.

Ancom had announced the proposed acquisition on April 28, which was to be set off against its 50.3% stake in Nylex.

The group previously said this would result in a balance of RM96.7 million of the total purchase consideration which will be satisfied via payment of RM50 million in cash and the balance RM46.7 million to be fulfilled via the issuance of 31.1 million new shares at RM1.50 per share.

Both Ancom and Nylex have a common shareholder, Datuk Siew Ka Wei. He owned an indirect interest of 53.8% and a direct interest of 2.2% in Nylex as at June 18.

In Ancom, Siew held a direct stake of 12.4% and an indirect stake of 9.3% as at June 25.

At noon break, Ancom shares were one sen or 0.67% lower at RM1.49, giving a market capitalisation of RM375.5 million. Nylex was 0.5 sen or 0.6% lower at 83.5 sen, translating to a market capitalisation of RM162.27 million.

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