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ANCOM (4758) ANCOM BHD offers to purchase Nylex's assets and liabilities — source

KUALA LUMPUR (April 28): Ancom Bhd is offering to purchase 100% of the assets and liabilities of Nylex (M) Bhd, according to a source familiar with the plans.

"Ancom has issued a letter of offer to Nylex BOD (board of directors) offering to purchase 100% of assets and liabilities of Nylex. The consideration is a mixture of various things," a source told The Edge.

Both Ancom and Nylex stocks were suspended from trading this morning "pending the release of a material announcement".

Prior to the latest trading suspension, the closing share price for Ancom stood at RM1.68 for a market capitalisation of about RM406.16 million. The stock had soared 64.7% year-to-date from RM1.02 apiece earlier this year.

Meanwhile, Nylex's latest closing share price stood at 90.5 sen for a market value of about RM162.26 million. The counter had climbed 40% from 64.5 sen on Jan 4.

According to Ancom's website, its diversified group's businesses include manufacturing and sale of agricultural and industrial chemicals besides information technology and media operations.

Ancom is the holding company of Ancom Logistics Bhd (ALB) and Nylex. It owns a 48.95% stake in Nylex, and a 45.06% stake in ALB.

The group has been undertaking a corporate restructuring exercise for nearly three years now to "improve efficiencies".

Ancom Group executive chairman and substantial shareholder Datuk Siew Ka Wei told The Edge last year that he and his team wanted "to use this time to reset the whole group".

This came, he said, as the group's logistics business under ALB and Nylex had not been performing as separate entities, causing them to look at merging the two businesses to improve efficiencies and potentially beef up earnings.

In July last year, the group announced a restructuring exercise that would see ALB's logistics business moved to Nylex.

Following that, an immigration technology company S5 Holdings Inc would be injected into ALB.

S5 is an integrated security IT solutions company to the government. It is mainly involved in the provision of security technology, intellectual property as well as the development and customisation of solutions and systems, consultancy and support in all related information technology and security industries.

This corporate exercise is still ongoing and has yet to be completed.

http://www.theedgemarkets.com/article/ancom-offers-purchase-nylexs-assets-and-liabilities-%E2%80%94-source


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