Ancom Nylex buys 70% stake in Colorex


PETALING JAYA: Integrated chemical group Ancom Nylex Bhd is acquiring 1.4 million shares or a 70% stake in Colorex Sdn Bhd for RM14mil.

In a filing with Bursa Malaysia, Ancom said its wholly-owned subsidiary, Nylex Holdings Sdn Bhd, had entered into a share sale agreement with Loke Yeak Thong and Lim Tiak Cheong (vendors), who each have a 50% stake in Colorex.

“The proposed acquisition comes with a profit guarantee by the vendors that Colorex shall achieve a net profit of no less than RM2.5mil for two consecutive years. This translates to an implied price-to-earnings multiple of eight times based on the annual profit guarantee of RM2.5mil and 100% valuation (RM20mil) of Colorex.”

Established in 1996, Colorex is principally involved in the blending and trading of chemicals, colours and related products.

Colorex is one of the top three specialty chemical suppliers to the local automotive sector.

It also serves other industries such as furniture, appliances and construction.

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