ANCOM Nylex Bhd plans to take over stakes owned by Kuok Brothers Sdn Bhd and a Thai businessman in a subsidiary that deals in chemical tank farms and warehouses for RM7.84 million, in line with its intention to consolidate the group’s chemical business.
The industrial chemical distributor has set in motion steps to take complete control of Ancom-Chemquest Terminals Sdn Bhd (ACT), a 51%-owned subsidiary of Synergy Trans-Link Sdn Bhd (STL), which in turn is a wholly owned subsidiary of Ancom Logistics Bhd.
The ACE Market-listed Ancom Logistics is a 34% owned subsidiary of the Ancom Nylex, a company whose largest shareholder is businessman Datuk Siew Ka Wei.
In an exchange filing today, Ancom Nylex said its wholly-owned subsidiary Synergy Tanker Sdn Bhd (STSB) has completed the acquisition from Chemquest Sdn Bhd of a 25% stake in ACT for RM4 million in cash.
STSB is also in the process of finalising the proposed acquisition of the 24% in ACT held by Thai businessman Surasak Suwanapasri for RM3.84 million in cash.
Chemquest is owned by Kuok Brothers Sdn Bhd (45%) and PPB Group bhd (55%). It is led by Lim Soon Huat as its MD.
ACT builds, owns, operates, leases and manages chemical tank farm and warehouse. It owns 48 tanks or 44,100 cu m tank storage capacity in West Port in Klang, Selangor.
Upon completion of the acquisitions, the filing said Chemquest representatives and Surasak will resign from the ACT board of directors, and also not engage in a business similar to or in competition directly with ACT for three years.
Explaining the rationale for the move, Ancom Nylex said chemical tank farms are important infrastructure to its operations and that the acquisitions are in line with its plans to consolidate the chemical business of the group under Ancom Nylex.
It said the move was further progress to its consolidation exercise after it completed the acquisition of all assets and liabilities of Nylex (M) Bhd for RM179.3 million on Jan 26, 2022, and acquired an additional 11% equity interest in One Chem Terminal Sdn Bhd (OCT) for RM863,000 cash by Ancom Nylex’s wholly owned subsidiary, Nylex Holdings Sdn Bhd, making OCT a 51% subsidiary of the company on May 31, 2022. — TMR/pic credit: Ancom Annual Report