SECURITY solutions provider S5 Holdings Inc is seeking to do a reverse takeover (RTO) of Ancom Logistics Bhd (ALB), people familiar with the matter tell FocusM.
“S5 will be the majority shareholder of ALB while Ancom will have a minority stake in the company, estimated to be at 5% after dilution, with room to enlarge its shareholding in the future,” a source said.
S5 had been tipped to be a frontrunner for the RM1.5 bil National Integrated Immigration System (NIIS) contract. The winner of the tender is expected to be announced soon.
E-government services provider MyEG Services Bhd had also offered to take up a 10% stake in S5 for RM90 mil from Merrington Assets Ltd.
Ancom Bhd is the holding company of ALB as well as Nylex (Malaysia) Bhd. This means the initial RTO of ACE Market-listed ConnectCounty Holdings Bhd reported on June 16 had collapsed. ALB is also listed on the ACE.
The Edge reported today that emergency board meetings had been called for all three companies under the Ancom group to discuss “restructuring plans for the whole group.”
Ancom Bhd, ALB and Nylex had requested for a suspension of the trading of their securities from 9am to 5pm today, pending a material announcement on a corporate exercise.
ALB’s core business is in tanking and logistics of petrochemicals and chemicals while Nylex is involved in the distribution and manufacturing of petrochemicals and industrial chemical products.
Ancom was seeking to consolidate its logistics assets under Nylex, said The Edge.
Prior to having their shares suspended, Ancom Bhd and Nylex’s shares closed at 77 sen with a market capitalisation of RM183.2 mil and RM134.69 mil respectively.
ALB, on the other hand, closed at 13 sen with a market value of RM61.53 mil. – July 15, 2020
