KUALA LUMPUR (Aug 22): Shareholders of Nylex (Malaysia) Bhd, which is part of the consortium that bid for Johor’s elevated autonomous rapid transit (e-ART) project, have rejected a proposal by major shareholders to take full control of the company through a selective capital reduction and repayment exercise.
Ancom Nylex Bhd (KL:ANCOMNY) and its unit Rhodemark Development together own 42.41% of Nylex. Datuk Siew Ka Wei is a major shareholder of Ancom Nylex, holding 13.89% directly and 2.33% through his family.
Nylex was delisted from the stock exchange on March 11, 2025, after failing to submit its regularisation plan. The company currently has around 12,000 shareholders.
According to Nylex’s circular to shareholders on the exercise dated July 28, it is part of a four-company group that submitted a joint proposal for the e-ART project on June 30, 2025.
It did not name the other parties to the bid but in March 2022, it had formed a consortium with Ancom Nylex, Sinar Bina Infra Sdn Bhd, and BTS Group Holdings Public Company Ltd to bid for a light rail transit (LRT) system in Johor Bahru. This was connected to the Singapore-Johor Bahru shuttle link (RTS Link), along with integrated property development based on a transit-oriented concept. The Heads of Agreement lapsed on April 30,2025.
The e-ART is an unmanned bus rapid transit (BRT) system that runs on an elevated track. It can carry between 5,000 and 12,000 passengers per hour, depending on how many carriages it has.
It is meant to work alongside the Johor Bahru-Singapore Rapid Transit System (RTS), which will start by the end of 2026. JB needs this local transport to help manage passengers coming from Singapore.
The 4km RTS line connects Bukit Chagar in JB to Woodlands North in Singapore and can carry 10,000 passengers per hour one way.
The move by Ancom Nylex and its wholly-owned subsidiary Rhodemark Development Sdn Bhd involved a cash repayment of 5.1 sen per share for the approximately 103.89 million shares they did not own, amounting to RM5.1 million funded from Nylex’s internal funds. The plan was intended to give Ancom Nylex greater control over Nylex’s business direction.
Despite a recommendation from independent adviser Mainstreet Advisers Sdn Bhd, who deemed the proposal fair and reasonable, the offer was overwhelmingly rejected by non-interested shareholders. At an extraordinary general meeting, 42 shareholders holding 98.83% of the voting shares opposed the plan, while only 1.17% supported it. A few shareholders abstained or refrained from voting due to conflicts of interest.
In July, The Edge, quoting sources, said that three groups have likely submitted proposals to the Public Private Partnership Unit to build the elevated autonomous rapid transit (e-ART) system in Johor Bahru. These groups were MMC Corp Bhd-DOM Industries, WCT Holdings Bhd (KL:WCT)-Lion Pacific, and YTL Corp Bhd (KL:YTL)-SIPP Rail Sdn Bhd, according to sources.
Ancom Nylex’s shares closed slightly lower at 91 sen, valuing the company at RM1.06 billion.