How will Ancom finance the Nylex acquisition?

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Ancom to Finance Nylex Acquisition Through Cash and Share Issuance

Ancom Bhd plans to finance its proposed acquisition of Nylex (M) Bhd through a combination of cash payments and the issuance of new Ancom shares. The total net consideration for the acquisition of the remaining 49.7 per cent stake in Nylex that Ancom does not currently own amounts to RM96.7 million. This amount will be settled by RM50 million in cash and RM46.7 million through the issuance of 31.1 million new Ancom shares at RM1.50 per share.
Cash Component of the Acquisition

A significant portion of the acquisition funding will be provided in cash. Ancom has allocated RM50 million to be paid directly as part of the net purchase consideration for Nylex. This cash payment is a key element in the financial arrangement for Ancom to gain full ownership of Nylex's assets and liabilities.
Share Issuance for Acquisition Funding

The remaining RM46.7 million of the net purchase consideration will be satisfied through the issuance of new Ancom shares. Specifically, 31.1 million new Ancom shares will be issued at a price of RM1.50 per share. This method allows Ancom to leverage its own equity to fund a substantial part of the transaction.
Overall Transaction Value and Premium

The entire proposed acquisition of all assets and liabilities of Nylex (M) Bhd is valued at RM179.3 million, which equates to RM1.00 per Nylex share. This offer represents a premium of between 16.2 per cent and 31.5 per cent over Nylex's volume-weighted average market price up to April 27, 2021, indicating a favourable valuation for Nylex shareholders.

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How will Ancom finance the Nylex acquisition?

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