KUALA LUMPUR: Zetrix AI Bhd has terminated its RM130mil proposed acquisition of a 50% stake in MYEG Ventures Inc from Next Lion Ltd, just three days after entering into the share purchase agreement.
In a filing with Bursa Malaysia, Zetrix AI said it terminated the agreement on Sept 4 following a review of the commercial rationale of the proposed acquisition amid volatility in its share price.
“The company had on Sept 4, terminated the agreement following a review of the commercial rationale due to the share price volatility for the consideration Shares,” it said.
Zetrix AI entered into the agreement with Next Lion on Sept 1 to acquire 15.25 million shares, representing a 50% equity interest in MYEG Ventures, for RM130mil.
The purchase consideration was to be satisfied through a combination of cash and the issuance of up to 360.57 million new Zetrix AI shares.
It said the issue price of the consideration shares was to be determined based on the five-day volume-weighted average market price of Zetrix AI shares immediately preceding their issuance.
The balance of the purchase consideration, after deducting the value of the consideration shares, was to be paid in cash using internally generated funds.
Zetrix AI said neither party would incur any break fees or penalties as a result of the termination, while both parties have been released from further performance of their respective obligations under the agreement.
“The termination of the agreement will not have any material impact on the paid-up share capital, substantial shareholders' shareholdings, earnings per share, consolidated net assets per share, and gearing of Zetrix AI,” it said.
“The Board, having considered all aspects of the termination, is of the opinion that the termination is in the best interest of Zetrix AI,” it added.
