KUALA LUMPUR, June 29 — Agricultural and industrial chemicals manufacturer Ancom Berhad today announced the acceptance of its RM179.3 million proposal to fully acquire Nylex (Malaysia) Berhad by the latter’s board of directors. 

Group chief executive Lee Cheun Wei said the acquisition would position Ancom, which already owned 50.3 per cent of Nylex, as one of the most integrated agricultural and industrial chemicals players in the region.

"We are delighted that the Nylex Board has accepted our offer. Now, the next step would be to obtain approval of the respective listed company’s shareholders at extraordinary general meetings to be convened.

"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,” said Lee in a statement today.

Ancom also explained that the proposed acquisition was set to be completed 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 cash company with no core business and must submit a proposal to the Securities Commission Malaysia to obtain a new core business within 12 months. 

"To recap, the proposed acquisition would result in Ancom becoming one of the most integrated agri-chemical and industrial chemical players in the region, creating a much larger and stronger chemical group with interest spanning across agri-chemical and industrial chemical business in Malaysia as well as the world market,” Lee added. 

Aside from Nylex, Ancom is also the holding company of Ancom Logistics Bhd (ALB) with a 45.06 per cent stake; the group was undergoing corporate restructuring exercises aimed at improving efficiency since the last three years. 

In April, it was reported that the net consideration for the proposed acquisition by Ancom would be worth around RM96.7 million for the remaining 49.7 per cent stake it did not already own. 

Ancom had said the net purchase consideration will be satisfied via payment of RM50 million in cash, with the balance RM46.7 million fulfilled through the issuance of 31.1 million new shares at RM1.50 a share. 

It was also reported that following the acquisition, Nylex will retain RM15 million cash in the company with the remaining RM81.7 million distributed to shareholders of Nylex other than Ancom through capital reduction and repayment exercises of RM35 million cash distribution and RM46.7 million in shares.