Ancom Nylex Berhad has proposed to undertake a private placement of up to 10% of the total number of issued ordinary shares to German company Helm AG.

The group said it had entered into a conditional placement agreement with HELM AG for the Proposed Private Placement at an issue price of RM1.00 per Ancom Nylex share. The Issue Price was determined based on the 5-day volume weighted average market price of its shares up to and including 20 September 2024 after adjusting for the distributions of approximately RM0.05 per share for the proposed second interim dividend of RM0.01 per share and 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").

Upon completion of the Proposed Private Placement, HELM AG will emerge as a substantial major shareholder of Ancom Nylex.

Based on the Issue Price, the Proposed Private Placement is expected to raise gross proceeds of up to approximately RM96.2 million which the group aims RM56.0 million for the repayment of borrowings; RM39.2 million for general working purposes; 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.