KUALA LUMPUR (April 30): Share prices of Ancom Bhd and 50.27%-owned associate Nylex (Malaysia) Bhd rose in Bursa Malaysia mid-morning trade today as investors weighed Ancom Bhd's announcement on Wednesday (April 28) on its proposed acquisition of Nylex's assets and liabilities for RM179.29 million or RM1 a share and after both companies reported higher quarterly net profits from a year earlier.
At 11.42am today, diversified group Ancom Bhd's share price rose three sen or 1.79% to RM1.71 after falling to its intraday low of RM1.57 so far today.
At 11.43am, petrochemicals manufacturer Nylex's share price climbed 0.5 sen or 0.55% to 91 sen after falling to its intraday low of 83.5 sen so far today.
At RM1.71, Ancom Bhd has a market value of about RM407.13 million based on the company's 238.09 million issued shares. Nylex's share price of 91 sen values the firm at around RM163.15 million based on its 179.29 million issued shares.
Trading of Ancom Bhd and Nylex shares resumed today following a suspension on Wednesday (April 28) in conjunction with both companies' announcements on Ancom's proposed acquisition of Nylex's assets and liabilities.
Malaysian markets resumed trading today following a holiday yesterday (April 29) in conjunction with Nuzul Al'Quran.
Ancom Bhd's website indicates that the diversified group's businesses include manufacturing and sale of agricultural and industrial chemicals besides information technology and media operations.
"Ancom Bhd is the holding company of Nylex and Ancom Logistics Bhd, both [of which] are listed on Bursa's Main Market and ACE Market respectively," Ancom Bhd said.
On Wednesday (April 28), Ancom Bhd said that as Nylex was only a 50.27%-owned subsidiary of Ancom Bhd, the proposed acquisition would enable Ancom Bhd to obtain full control of Nylex's assets and businesses in industrial chemicals, polymer and chemical logistics divisions such that it would provide greater flexibility for Ancom Bhd to plan and decide on the business strategy of these businesses after the completion of the proposed acquisition.
"The proposed acquisition is also in line with Ancom Bhd's intention of establishing a fully integrated chemical group," Ancom Bhd said.
Ancom Bhd and Nylex also reported on Wednesday better financials for the third quarter ended Feb 28, 2021 (3QFY21).
Ancom Bhd said 3QFY21 net profit rose to RM7.08 million from RM165,000 a year earlier while cumulative net profit for the nine months ended Feb 28, 2021 (9MFY21) was higher at RM16.33 million compared with RM2.1 million.
Meanwhile, Nylex said 3QFY21 net profit stood at RM4.94 million versus a net loss of RM3.67 million a year earlier while cumulative 9MFY21 net profit stood at RM7.91 million compared with a net loss of RM4.53 million.