Chemicals

23. September 2024, Petaling Jaya (Malaysia)

HELM AG to emerge as long-term strategic partner and substantial shareholder in Ancom Nylex Berhad

Southeast Asia’s leading fully integrated chemical group, Ancom Nylex Berhad (“Ancom Nylex” or the “Group”) (“安康”)
has today proposed to undertake a private placement of up to 10% of the total number of issued ordinary shares in Ancom Nylex (“Placement Shares”) (“Proposed Private Placement”).

• Proposed Private Placement of up to 10% of total number of issued shares of Ancom Nylex to HELM AG.
• HELM AG set to be a long-term strategic partner and substantial shareholder in Ancom Nylex.
• Proposed first interim dividend for FY25 by way of distribution of treasury shares on the basis of 4 treasury shares for every 100 shares

[Translate to English:]

Ancom Nylex also had on 23 September 2024, entered into a conditional placement agreement with HELM AG (“Placee”) for the Proposed Private Placement at an issue price of RM1.00 per Ancom Nylex share (“Issue Price”). The Issue Price was determined based on the 5-day volume weighted average market price (“VWAP”) of Ancom Nylex shares up to and including 20 September 2024 after adjusting for the distributions of approximately RM0.05 per share as
follows:
i. Proposed second interim dividend of RM0.01 per share in respect of the financial year ended 31 May 2024 (“FY24”);
ii. Proposed first interim dividend by way of distribution of treasury shares on the basis of 4 treasury shares for every 100 shares, representing approximately RM0.04 per share in respect of the financial year ending 31 May 2025 (“FY25”).
For the avoidance of doubt, the Placement Shares are not entitled to the above distribution.
Upon completion of the Proposed Private Placement, HELM AG will emerge as a substantial major shareholder of Ancom Nylex.
 
Founded in 1900, Germany-based HELM AG 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 AG operates across key business lines including chemicals, crop solutions and energy materials. HELM AG's revenue reached 5.9 billion Euros in 2023. 

CEO of HELM AG, Mr. Stephan Schnabel said, “Our partnership with Ancom Nylex presents a strategic opportunity to strengthen our 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. With this trustful partnership with Ancom Nylex, we look forward to turning these opportunities into mutually beneficial and tangible results.”
 
Executive Vice Chairman of Ancom Nylex, Dato’ Siew Ka Wei (拿督萧家伟) commented, “We are delighted to welcome HELM AG as our main strategic long-term investor and partner. More excitingly, they bring many new ideas to the partnership and share with us the highest corporate governance standards. With the combined strengths of Ancom Nylex and HELM AG, we are confident to reach new heights together in the agricultural chemicals (“Agrichem”) and industrial chemicals sectors. Ultimately, this partnership would not only enhance shareholders’ value but also improve our current shareholding mix as well as the Group’s financial position.”

Managing Director and Group CEO of Ancom Nylex, Datuk Lee Cheun Wei
(拿 督 李 俊 伟 ) said, “HELM AG is a leading global chemical player with an established presence and expertise in the Agrichem sector. They are also present in our current export markets. Hence, we can develop new and existing markets with an enlarged product portfolio together. We are certainly excited to take our relationship to the next level and have them on board as our strategic and substantial shareholder as we see strong synergies and opportunities. HELM AG’s expertise in both Agrichem and industrial chemicals complements Ancom Nylex’s core competencies, creating synergies for knowledge transfer and innovation.”
“With over 120 years of track record and a robust global network, HELM AG brings significant resources and capabilities to the table. Notably, HELM AG’s expertise in active ingredients and crop protection formulations will be invaluable in advancing our Agrichem product development. With HELM AG as substantial shareholder in Ancom Nylex, we are poised to accelerate our growth as an integrated chemicals player,” Datuk Lee concluded.
 
Based on the Issue Price, the Proposed Private Placement is expected to raise gross proceeds of up to approximately RM96.2 million.
The proceeds are intended to be utilized in the following manner:
i. RM56.0 million for the repayment of borrowings;
ii. RM39.2 million for general working purposes;
iii. RM1.0 million for the estimated expenses for the Proposed Private Placement.
  
The Proposed Private Placement is expected to be completed by the fourth quarter of 2024 barring any unforeseen circumstances.

About Ancom Nylex Berhad
Ancom Nylex is a diversified group with businesses in agricultural chemicals, industrial chemicals, chemical logistics, amongst others. The Group was established in 1969 as Ansul (Malaysia) Sdn Bhd as a pioneer manufacturer of agricultural chemicals in Malaysia. Ancom Nylex was listed on the Main Market of Bursa Malaysia Securities Berhad since 1990. The Group is the sole manufacturer of herbicide active ingredients in Southeast Asia and one of the only 2 key manufacturers of ethanol in Malaysia. Ancom Nylex is the holding company of Nylex (Malaysia) Berhad and Ancom Logistics Berhad, which are listed on the Main Market and ACE Market of BursaMalaysia Securities Berhad respectively.
 

About HELM AG
HELM is a Hamburg, Germany, based family-owned company established in 1900. With up to 100 subsidiaries and participations in more than 30 countries, HELM is one of the largest independent chemical companies worldwide. HELM is committed to providing solutions that help its partners to tackle the reduction of CO2 emissions and the loss of biodiversity. Through its global presence, the company also strives to create positive impact in local societies around the world. HELM’s partnerships in Lithium, bio-based BDO, and digital tools supporting efficient agriculture are recent examples which support that goal. HELM is active in the chemicals and energy materials industry as well as agriculture and pharmaceuticals.
 

Contact

Janneke Menzel

Manager External Communication

Lina Ebel

Senior Corporate Communications Manager

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