Ancom Says Nylex Board of Directors Accepted RM 179.3 Million Takeover Offer | Money
KUALA LUMPUR, June 29 – Agricultural and industrial chemicals maker Ancom Berhad today announced the acceptance of its RM179.3 million proposal to fully acquire Nylex (Malaysia) Berhad by the board of directors of this last.
Group chief executive Lee Cheun Wei said the acquisition would position Ancom, which already owns 50.3% of Nylex, as one of the region’s most integrated agricultural and industrial chemicals players.
“We are delighted that Nylex’s board of directors has accepted our offer. Now the next step would be to obtain the approval of the shareholders of the respective listed company at the extraordinary general meetings to be convened.
“We consider this to be a win-win exercise, as Nylex shareholders would receive part in cash as well as part of Ancom’s shares through the exercise of capital reduction and redemption at the company. ‘resulting from the proposed acquisition, thereby enabling them to continue participating in the growth of the broader group, ”Lee said in a statement today.
Ancom also explained that the proposed acquisition is expected to be finalized by the fourth quarter of this year, barring any unexpected hurdles.
As explained in the proposal, Ancom said that following the acquisition, Nylex would be classified as a treasury company with no core business and had to submit a proposal to the Securities Commission Malaysia to get a new core business within 12 months. .
To recap, the proposed acquisition would make Ancom one of the most integrated industrial agrochemical and chemical players in the region, creating a much larger and stronger chemical group with an interest spanning the agrochemical and industrial chemical activities in Malaysia. like as well as the global market, ”added Lee.
Besides Nylex, Ancom is also the holding company of Ancom Logistics Bhd (ALB) with a 45.06 percent stake; the group has been the subject of corporate restructuring exercises aimed at improving its efficiency for the past three years.
In April, it was reported that the net consideration for the proposed acquisition by Ancom would be around RM96.7 million for the remaining 49.7% it did not already own.
Ancom had stated that the net purchase consideration would be met through the payment of RM 50 million in cash, with the balance of RM 46.7 million being achieved through the issuance of 31.1 million new shares at 1, 50 RM per share.
It was also reported that following the acquisition, Nylex will keep RM15 million in cash in the company, with the remaining RM81.7 million being distributed to Nylex shareholders other than Ancom through capital reduction exercises and repayment of RM 35 million in cash distribution and RM 46.7 million in shares.