KUALA LUMPUR: Zetrix AI Bhd is acquiring 15.25 million shares in MYEG Ventures Inc, a 60% owner of Zetrix associate MYEG Philippines Ltd, for RM130mil in cash and shares, the group said in a late-Tuesday filing with the stock exchange.
Trading in the shares of Zetrix was halted by Bursa Securities until 10am on Wednesday, in light of the announcement.
According to the filing, the share purchase from Next Lion Ltd will be settled via a combination of cash and the issuance of 360.57 million shares in Zetrix AI.
Upon completion of the proposed acquisition, MYEG Phillipines Inc will become a subsidiary of Zetrix AI.
The group said the purchase took into consideration the potential market size in the Philippines to rollout new services related to its blockchain and AI platform such as ZTrade, Digital Identity Verifier and Avatar AI.
It said there was also economic potential from the signing of an agreement between MYEG Philippines, Zetrix AI's joint venture with Mimos Bhd, and the Philippines government to implement and operationalise the public blockchain infrastructure of the Philippines based on Zetrix protocol with DICT.
"The proposed acquisition will provide the group with an opportunity to establish and enhance its presence in the Philippine market, broaden its business operations and customer base, and create a stronger platform for future growth in the region.
"It is also expected to complement the group’s existing business strategies and facilitate the implementation of its long-term expansion plans in the Philippines," it said.
Shares in Zetrix AI last traded at 26.5 sen a share, after a price crash over the last three trading sessions took off about 60% of its value. Trading in the stock reached a historical record of 1.73 billion units in the previous session.
