KAJANG: Apex Equity Holdings Bhd
has obtained a simple majority from its shareholders for the proposed merger with Mercury Securities Sdn Bhd and the proposed private placement of 20 million new ordinary shares.
A total of 54.8% voted in favour for both resolutions during the EGM while 45.2% voted against.
The proposed merger with a consideration of RM140mil, will see Mercury Securities’ stockbroking, corporate advisory and other related businesses, being transferred to Apex’s wholly-owned subsidiary JF Apex Securities Bhd.
After the proposed merger, Mercury Securities would become the single largest shareholder in Apex with a 31% stake.
Non-independent non-executive director Datuk Azizan Abd Rahman said the merger will proceed after a vesting order is obtained from the High Court.
The merger process is expected to be completed in two months.
Apex had entered into an agreement to merge with Mercury in September last year, in what is deemed to be a move to address the issue of ACE Investment Bank Ltd’s 25% stake in Apex.
The Securities Commission approved the merger but on conditions that ACE must exit Apex and fully dispose its shareholdings within six months of the merger’s completion date.
ACE also has to cease being Apex’s board member in the immediate term upon the completion of the exercise and also sell down its shareholding in Apex to below 15% within a month from the date of completion.