KUALA LUMPUR (March 8): Nylex (Malaysia) Bhd surged as much as 30 sen or 6,000% to 30.5 sen on Tuesday morning (March 8) after its parent firm Ancom Bhd proposed a distribution of up to 18.4 million shares or a 10.24% stake in Nylex to Ancom shareholders by way of dividend-in-specie.
Nylex, which emerged as the top gainer on the local bourse, settled at 29.5 sen at 10.12am, still up 29 sen or 5,800%, with 3.48 million shares traded.
Ancom told a bourse filing on Monday the dividend-in-specie will be distributed on the basis of one Nylex share for every 20 ordinary shares in Ancom.
It said it would distribute 14.23 million Nylex shares in the minimum scenario and 18.36 million shares in the maximum scenario.
Ancom currently holds a 50.27% stake or 90.13 million shares in Nylex.
Upon completion of the proposed dividend-in-specie, Ancom’s shareholding in Nylex will reduce to between 42.34% and 40.03% under the minimum scenario and maximum scenario respectively.
Ancom also proposed a share split involving the subdivision of every one existing Ancom share into three Ancom shares.
On Jan 26, Ancom completed the acquisition of the entire business and undertaking, including all the assets and liabilities of Nylex, whereby part of the purchase consideration for the acquisition will be satisfied via the issuance of 31.13 million new Ancom shares.