PETALING JAYA: Ancom Nylex Bhd
's wholly-owned subsidiary Nylex Holdings Sdn Bhd has entered into a non-binding term sheet deal with Topnext International Company Ltd to dispose of up to 50% equity interest in Maxlive Sdn Bhd.
In a filing to Bursa Malaysia, Ancom Nylex, a machinery manufacturer, noted Maxlive is a company that was going to be formed as part of an internal restructuring.
The transaction is said to be undertaken in two tranches, whereby 25% equity interest will be sold for US$9.32mil (RM38.4mil) in the first tranche.
A second tranche disposal of an additional 25% equity interest in Maxlive to Topnext for RM38.4mil or US$9.3 mil is subject to the purchaser’s exercise of a call option.
Ancom Nylex noted proceeds from the transactions will be used for working capital, repayment of borrowings and general corporate purposes.
The equity valuation for 100% interest in Maxlife is US$37.28mil. Ancom Nylex will inject six subsidiaries into Maxlife for the exercise.
Ancom Nylex said the proposed transaction will enable it to form a strategic partnership with Topnext which in turn will support the growth of Maxlife along with six other companies.
“The sale will expand product offerings and market opportunities and to broaden the group’s market reach for its chemical products. It also allows Nylex Holdings to realise part of the value of its investment in Maxlive and collaborate with Topnext on future participation in the chemical products business.
