Ancom Logistics Bhd (ALB) has made an offer to acquire the entire share capital of Green Lagoon Technology Sdn Bhd for RM120 million. In exchange, ALB plans to issue one billion new shares at a price of 12 sen per share. Both ALB and its parent company, Ancom Nylex Bhd, announced the deal separately to Bursa Malaysia. The acquisition is contingent on a profit guarantee, where Green Lagoon must generate at least RM8 million in profit after taxes for the first year and a minimum of RM10 million for the second year following the acquisition.

In addition, ALB has proposed a private placement to Ancom Nylex of up to 183.33 million new shares, raising a maximum of RM22 million. This would increase Ancom Nylex’s direct and indirect stake in ALB’s issued share capital, with a target ownership not exceeding 21% after the purchase.

ALB also offered to sell Ancom Nylex and its subsidiaries at an independent value, with the transaction to be settled in cash under terms that will be determined later. Ancom Nylex officials noted that the acquisition of Green Lagoon, which specializes in environmental solutions, aligns with their goal of achieving full decarbonization by 2025. Green Lagoon is known for its expertise in designing, constructing, operating, and maintaining biogas plants that convert waste into valuable resources.

In a separate update, Ancom Nylex reported its strongest-ever financial results for the nine months ending February 29, 2024. The company posted a net profit of RM63.03 million, up from RM56.95 million in the same period the previous year. Earnings per share increased to 6.64 sen, compared to 6.4 sen in the prior year. The agrichem division contributed significantly to this performance, with higher-margin sales driving a 23.4% increase in earnings before interest and tax (EBIT) for the segment.