Ancom’s acquisition of Nylex green-lit during shareholder EGM
KUALA LUMPUR, Oct 26 — Ancom Bhd said its shareholders have agreed to its proposal to fully acquire Nylex (Malaysia) Bhd for RM179.3 million, during an extraordinary general meeting today.
The acquisition will include a net payment of RM96.7 million in order for Ancom to acquire the remainder of Nylex’s shares outside of the 50.3 per cent stake it already owned, of which RM50 million will be in cash.
Ancom said Nylex would be converted into a cash company once the acquisition was finalised, and the leading regional agricultural and industrial chemicals player would then be known as Ancom Nylex Bhd.
“The consolidation will allow for greater efficiency as we now have full control over the Group’s manufacturing, distribution, and logistic functions,” Ancom Group CEO Lee Cheun Wei said of the acquisition.
“With the anticipated recovery of the economy premised on the high vaccination rate and the relaxation of border restrictions, as well as the rising commodity prices, we are hopeful that the industrial chemicals division will improve going forward.”
Lee thanked the shareholders for approving the acquisition, which he said would make the firm well-placed to capitalise on the post-pandemic recovery both in the region and globally.
He added that the consolidation would also support the ambition of making Ancom Nylex into a billion-ringgit firm.
The proposed acquisition is scheduled to be completed within the first quarter of 2022, along with the eventual renaming to Ancom Nylex.
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