KUALA LUMPUR, Sept 24 — Leading integrated chemical group Ancom Nylex Berhad announced its plans to raise up to RM96.2 million via a private placement of shares to Hamburg-based family-owned major chemical marketing enterprises Helm

The fundraising exercise involves the issuance of 96.22 million new shares — equivalent to 9.47 per cent of its 932.25 million issued shares — with expectations that the German firm’s investment would spearhead the company’s presence in Europe as well as in the Americas markets.

In a filing with Bursa Malaysia yesterday, Ancom Nylex said it intended to resell 30 million of its 80.14 million treasury shares to the open market before implementing the proposed private placement.

Subsequent to a video conference last night, Stephan Schnabel, Helm AG’s sole shareholder and chief executive, confirmed that his company had also subscribed to the aforementioned treasury shares, with Helm now set to emerge as a substantial shareholder in Ancom Nylex.

The shares acquisition would result in Helm holding approximately a 13 per cent stake in Ancom Nylex according to Schnabel, later stating he has no plans to further increase Helm’s shareholding at the moment.

He also said the partnership with Ancom Nylex offered a strategic opportunity to expand their presence in South-east Asia’s chemicals and agricultural sectors while the latter could leverage on his firm’s strong market presence in Europe and the Americas.

"I can say that we are very oriented and focused on profitability but not short-term. It has to be really sustainable growth and profitability and this is what I think drives both companies,” he said.

In the same video conference, Ancom Nylex executive vice chairman Datuk Siew Ka Wei said the entire exercise was aimed at bringing "one of the biggest, best companies they could find” as Ancom Nylex’s long-term strategic partner and investor.

"There are a lot of things, opportunities together with them that can be explored in crop care, as well as the petrochemical and industrial chemical fields.

"The fact that a company like Helm with their high standards of corporate governance has picked us as their partner in Asia Pacific... I think going forward, we could have additional relationships with big players in Asia and Europe.

"The main thing is to make this Ancom-Helm partnership work. We want to bring more value to our existing shareholders,” Siew said.

Siew also lauded Schnabel’s international knowledge and innovative ideas, adding the latter hails from a renowned and historical family-owned company operating in over 30 countries worldwide.

"We have received unsolicited offers before, but to be fair, Helm is the best partner we can have.

"We have looked at the situation and for the growth of the company and benefit of all shareholders, Helm would undoubtedly be a right partner for the long-term,” he said.

Ancom Nylex group chief executive and managing director Datuk Lee Cheun Wei explained that both companies have no overlap despite having presence in the Americas.

As solution providers, Lee said Ancom Nylex focuses on post-emergence products, while Helm AG specialises in pre-planting, burn-down and pre-emergence solutions.

For Europe, Lee said Ancom Nylex aimed at leveraging Helm’s market expertise and geographical reach to improve its performance there as the company has not been active there in the past.

The latest development in the Ancom-Helm partnership was the culmination of numerous discussions held in the first half of this year, with business relationship between both companies going as far back as 2005.

Of the planned RM96.2 million raised, RM56.0 million will be used for the partial repayment of bank borrowings while RM39.2 million for the group’s working capital to purchase raw materials and inventories for both the agricultural and industrial chemicals businesses.

Ancom Nylex is a diversified group with businesses in agricultural chemicals, industrial chemicals, chemical logistics, amongst others.

It is also a large-scale producer of active ingredients for herbicides in South-east Asia and a key player in the Asia Pacific.

Established in 1900, Helm AG is principally involved in marketing chemicals (feedstocks and derivatives) as well as the crop protection industry, the pharmaceuticals and medical industry, and the fertiliser industry.