KUALA LUMPUR: Integrated chemical group Ancom Nylex Bhd says it will undertake a private placement of up to 10 per cent of the total number of its issued shares.
Ancom Nylex also had on Sept 23 entered into a conditional placement agreement with Helm AG for the private placement at an issue price of RM1.00 per share.
Upon completion of the placement, Helm will emerge as a substantial major shareholder of Ancom Nylex, it said today.
Founded in 1900, Germany-based Helm is one of the world's major independent chemicals marketing and distribution company.
With over 100 subsidiaries and a global presence in more than 30 countries, Helm operates across key business lines including chemicals, crop solutions and energy materials.
Its revenue reached 5.9 billion euros in 2023.
Helm chief executive officer Stephan Schnabel said its partnership with Ancom Nylex presents a strategic opportunity to strengthen its footprint in the Southeast Asian chemicals and agricultural industry and invest in a high-growth region.
"We are enthusiastic about the vast business potential, to create added value, and make a significant impact in the chemical and agricultural markets."
Ancom Nylex executive vice chairman Datuk Siew Ka Wei said Helm brings many new ideas to the partnership and share with it the highest corporate governance standards.
"With the combined strengths of Ancom Nylex and Helm, we are confident to reach new heights together in the agricultural chemicals and industrial chemicals sectors."
The RM1 issue price was determined based on the five-day volume weighted average market price of Ancom Nylex shares up to Sept 20 after adjusting for the distributions of about RM0.05 per share.
The distributions are for the second interim dividend of RM0.01 per share in respect of the financial year ended May 32 2024 and proposed first interim dividend.
This is by way of distribution of treasury shares on the basis of four treasury shares for every 100 shares, representing RM0.04 per share in respect of FY25.
The placement is expected to raise gross proceeds of up to RM96.2 million and be completed in the fourth quarter of 2024.