PETALING JAYA, Sept 19 — Leading integrated chemical group Ancom Nylex Berhad, through its wholly-owned subsidiary Nylex Holdings Sdn Bhd, has acquired a 70 per cent equity interest in Colorex Sdn Bhd for a total cash consideration of RM14 million.

The group entered into a Share Sale Agreement (SSA) with Colorex’s stakeholders, Loke Yeak Thong and Lim Tiak Cheong.

In a filing with Bursa Malaysia today, Ancom Nylex announced that its wholly-owned subsidiary, Nylex Holdings Sdn Bhd, has signed a share sale agreement with Colorex’s shareholders and directors, Loke Teak Thong and Lim Tiak Cheong, to acquire 1.4 million shares in the company.

"Colorex’s acquisition fits into our strategy as we have some similarities in customer base, (it) can complement our core diversified chemical business and potentially can grow by leveraging on our strong customers network in Malaysia and regionally,” Nylex Holdings’ chief executive Robin Ling told Malay Mail.

Loke said the negotiations took as long as six months to finalise, adding that some small compromises were needed for bigger gains.

"The type of resources that they (Ancom Nylex) already have, the infrastructure, (it) can grow the business further. As individuals, there is only so much that we can do. But with a listed entity, the sky is the limit, so to speak,” Loke said in an exclusive interview.

Ling also expressed confidence that Colorex will see growth post-acquisition, highlighting that previous acquisitions by Nylex had tripled in profits.

In 2023, Colorex reported a profit after tax of RM1.8 million and is expected to achieve RM2.5 million in PAT annually for the next two years.

The partnership will enable the sharing of talent, financial resources, and infrastructure. Ancom Nylex is a diversified group with interests in agricultural chemicals, industrial chemicals, and chemical logistics, among other areas.