Posted by High5 > 2020-07-16 13:10 | Report Abuse

KUALA LUMPUR (July 16): MyEG Services Bhd’s unit MyEG Capital Sdn Bhd has announced that it will be disposing of its 10% stake in S5 Holdings Inc to Ancom Logistics Bhd today, a mere five weeks after announcing its plans to purchase equity in the national security solution provider.

In a filing with Bursa Malaysia, MyEG said its subsidiary and other vendors S7 Holdings Sdn Bhd, Merrington Assets Ltd (MAL) and Avocat Sdn Bhd had entered into a heads of agreement with Ancom Logistics and its parent Ancom Bhd to undertake a reverse takeover (RTO) of S5. 

S5 has three subsidiaries, one of which is involved in the provision of national security solutions.

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The RTO entails the proposed acquisition by Ancom Logistics of S5’s entire share capital from the four vendors at a price to be agreed upon by the parties involved, subject to a valuation report by an independent party.

Ancom Logistics will fulfil the purchase by issuing new ordinary shares to the vendors at 10 sen apiece.

The vendors will then make a mandatory general offer for all of Ancom Logistics shares that they do not already own, and offer some of the new ordinary shares for sale to independent third-party investors.

MyEG said the proposed RTO provides an avenue to unlock its initial investment — of RM90 million for a 10% stake in S5, thus roughly valuing the company at a whopping RM900 million — as the latter would be listed on the ACE Market and gain access to public markets, boost its standing, and enhance its value through better liquidity and prospective interest from more investors.

The announcement confirms an exclusive report by theedgemarkets.com yesterday about the restructuring of Ancom’s group of companies and its acqusition of S5.

As at 11.08am, MyEG was up three sen or 2.07% at RM1.48, valuing the company at RM5.13 billion.

Posted by High5 > 2020-07-16 13:10 | Report Abuse

Congrats hopefully fly higher

Posted by Ncm88 > 2020-07-16 13:20 | Report Abuse

high 5 u want buy cheap MyEg ah, so as many people do so

Posted by TtreeInvestor > 2020-07-16 13:22 | Report Abuse

Ancom Logistic up 150% already.

Posted by TtreeInvestor > 2020-07-16 13:26 | Report Abuse

MYEG initiate the process of purchasing S5 10% shares in June, completed the transactions recently. Then immediately RTO come into picture.

What does this mean? and what is the relationship between MYEG and S5?

Interesting

Posted by kobethebeagle > 2020-07-16 13:39 | Report Abuse

Here's the simple breakdown of what is happening:
1. MYEG sold 10% of S5 share to Ancom Logistic.
2. Ancom Logistic together with MYEG and gang will take over S5.
3. Ancom Logistic will then be listed in Bursa as another company.

Posted by High5 > 2020-07-16 13:44 | Report Abuse

THE reverse takeover (RTO) of Ancom Logistics Bhd (ALB) by S7 Holdings Sdn Bhd is a positive move for Ancom Bhd, making it part of a bigger group.

“Ancom was selling ALB’s assets to Nylex (Malaysia) Bhd, which would allow it to streamline its operations by making logistics in-house, and Ancom would be able to reduce its debt to Nylex at the same time,” said a source close to Ancom management.

Nylex made up 50% of ALB’s business, according to the source.

At the same time, after selling ALB’s assets, Ancom needed to find an asset to inject into ALB, as it would have become a shell company.

“S7 came with the offer to RTO for S5, one of its holdings of which it owns about 70%, and this was timely, saving Ancom the time looking for an asset to inject into ALB,” said the source.

It was also explained that, even after dilution, Ancom would own about 5% of S5 Holdings Inc, a frontrunner of the National Integrated Immigration System contract (NIIS) worth RM1.5 bil. This would also raise Ancom’s value from owning a stake “in a RM900 mil company, according to MyEG Services Bhd’s deal.” For context, MyEG had paid RM90 mil for a 10% stake in S5.

“ALB went from a break-even ACE Market counter to issuing at 10 sen at a 473 million share base, and is being sold at RM47 mil. Discounting the net asset per share of 5 sen, ALB is being sold at a 5 sen premium, for RM24 mil. This is a very good price for a shell,” said the source.

Although there were also concerns raised about political motivations behind the deal, the source pointed out that this was merely a matter of timing.

“The S5 deal is merely timely, and S5 is also looking to conclude an RTO quickly, having been delayed by the ConnectCounty Holdings Bhd attempt,” said the source, noting that the current deal with ALB was not the same as the verbal agreement between S5 and ConnectCounty, due to a heads of agreement having been signed.

“The tender for the NIIS is a bonus, and as a minority shareholder, we would view it as good news should it be awarded to S5,” said the source.

Bursa filings were made by both Ancom and MyEG, with suspensions of trading for both companies.

“ALB has entered into a Heads of Agreement with S7 Holdings Sdn Bhd, Merrington Assets Limited, MyEG Capital Sdn Bhd and Avocat Sdn Bhd,” said Ancom, according to the bourse filing dated July 16.

At the market’s noon close, Ancom’s shares were last done at 81 sen, up 4 sen, with 22.4 million shares traded. – July 16, 2020

Posted by Witty > 2020-07-16 14:12 | Report Abuse

Oh that was EF's bad news? Sold all s5 stake.

Posted by Luckyman95 > 2020-07-16 14:15 | Report Abuse

So is that a bad news?

Posted by stephenking > 2020-07-16 14:18 | Report Abuse

why make thing so complicated, haha

Posted by High5 > 2020-07-16 14:25 | Report Abuse

Ncm88 ive bn holding my eg for awhile

Posted by derrtan > 2020-07-16 15:05 | Report Abuse

why suddenly drop??

Posted by TtreeInvestor > 2020-07-16 15:17 | Report Abuse

Buying call warrants, yummy

Posted by TtreeInvestor > 2020-07-16 15:56 | Report Abuse

Whole Bursa system down?

Posted by longlifeman > 2020-07-16 15:57 | Report Abuse

cannot trade....online

Posted by mf > 2020-07-16 15:57 | Report Abuse

Trading platforms freeze amid high turnover
theedgemarkets.com
/
theedgemarkets.com

July 16, 2020 15:47 pm +08

Posted by EmperorFund > 2020-07-16 15:58 | Report Abuse

RUN from TOPGLOVE....RUN to Myeg?

Posted by TtreeInvestor > 2020-07-16 16:00 | Report Abuse

EmperorFund finally back!!!! We miss you so much, you go pursuade your friends funds take some money from topglove to myeg lah. We are waiting it.

Posted by icecool > 2020-07-16 16:01 | Report Abuse

no need trade go sleep

Posted by Heng999 > 2020-07-16 16:02 | Report Abuse

Gg top glove, hot money will come To myeg, hurrayyyyy

Posted by pang72 > 2020-07-16 16:05 | Report Abuse

Chat lat lo...

All top glove money will flow to government back stock, myeg

Posted by Heng999 > 2020-07-16 16:05 | Report Abuse

Hahahahaha

Posted by pang72 > 2020-07-16 16:05 | Report Abuse

Myeg is the next mama and papa stock...

Posted by pang72 > 2020-07-16 16:06 | Report Abuse

Gkove-> myeg

Posted by pang72 > 2020-07-16 16:07 | Report Abuse

Myeg will be S5 shareholder via Ancom logistic..

... Hihi

Posted by Shah Faisal > 2020-07-16 16:08 | Report Abuse

What does MyEG gain from buying and selling s5...EPF and KWSP keep buying but turn out no good news also.

Posted by Witty > 2020-07-16 16:11 | Report Abuse

Shah, that called "investment".
If you are expected buy on rumors sell on news, that called "gambler".

Posted by Pershing > 2020-07-16 16:14 | Report Abuse

Myeg just want to secure their position/jobs. The power with S5.

Posted by pang72 > 2020-07-16 16:18 | Report Abuse

Myeg has more and less confirm the position for IIS..

No way to run

Posted by TtreeInvestor > 2020-07-16 16:18 | Report Abuse

Anyone notice about the original shareholder of S5 is different?

Notice 15 June 2020 - NSA Technology Sdn bhd 76.4%
Notice 16 July 2020 - S7 Holdings Sdn Bhd 76.4%

Both from MYEG announcement data

Posted by SERIOUSLEARNER > 2020-07-16 16:18 | Report Abuse

Very high possibility

Posted by Heng999 > 2020-07-16 16:20 | Report Abuse

Glove contra player hand is shaking......

Posted by mf > 2020-07-16 16:21 | Report Abuse

market close

Posted by EmperorFund > 2020-07-16 16:24 | Report Abuse

Big Funds may be too dumb to see this as my sources said

Posted by Heng999 > 2020-07-16 16:24 | Report Abuse

Bursa close shop

Posted by TtreeInvestor > 2020-07-16 16:25 | Report Abuse

EF, slow slow to see loh. Is better to keep the money in topglove first, US cari excuse to ban only.

Posted by Heng999 > 2020-07-16 16:27 | Report Abuse

This 2 week glove money will come here mama myeg...... Yay

Posted by icecool > 2020-07-16 16:31 | Report Abuse

bursa trading adventure is getting more and more intriguing better than weed

Posted by daddy999 > 2020-07-16 16:49 | Report Abuse

but glove drop everybody drop

Posted by Heng999 > 2020-07-16 16:56 | Report Abuse

Every body drop, myeg up only hehe

Posted by TtreeInvestor > 2020-07-16 16:58 | Report Abuse

Frankly speaking, TOPGLOV valuation is too over d. It is also a good wake call to those shareholder, is time to review their position.

Posted by kelvincjh23 > 2020-07-16 17:04 | Report Abuse

That means myeg is still Indirectly own s5?

Posted by EmperorFund > 2020-07-16 17:13 | Report Abuse

If All Big Funds move into myeg?

Posted by daddy999 > 2020-07-16 17:18 | Report Abuse

tp rm3 comingggggg

Posted by pang72 > 2020-07-16 17:41 | Report Abuse

Glove - >myeg->S5->ANCOMLB

Posted by pang72 > 2020-07-16 17:46 | Report Abuse

This is the final destination for the hot money

Posted by pang72 > 2020-07-16 18:01 |

Post removed.Why?

Posted by pang72 > 2020-07-16 18:01 | Report Abuse

S5 power

Posted by Stockwiser > 2020-07-16 18:03 | Report Abuse

Why u guys so confident hot money will fly to myeg?

Posted by pang72 > 2020-07-16 18:10 | Report Abuse

Because we got myeg mah..