KUALA LUMPUR: Zetrix AI Bhd has revived its proposed RM130mil acquisition of a 50% stake in MYEG Ventures Inc through a new agreement with IPVG Employees Inc, after terminating an earlier deal with Next Lion Ltd.
Zetrix AI had on Sept 1 agreed to acquire 15.25 million shares, representing a 50% stake in MYEG Ventures, from Next Lion for RM130mil.
However, the company terminated that agreement on Sept 4 following a review of its commercial rationale due to volatility in Zetrix AI’s share price, which affected the consideration shares to be issued.
On the same day, Zetrix AI entered into a new share purchase agreement with IPVG to acquire the same 15.25 million shares in MYEG Ventures for RM130mil.
Under the new arrangement, IPVG, which currently owns 9.4% of MYEG Ventures, has agreed to acquire another 40.6% from other shareholders before selling the combined 50% stake to Zetrix AI.
The RM130mil consideration will be satisfied through the issuance of 360.57 million new Zetrix AI shares at 28 sen each, with the remaining RM29.04mil to be paid in cash from internally generated funds.
The 28 sen issue price represents a 4.1% discount to Zetrix AI’s five-day volume-weighted average market price of 29.21 sen up to Sept 3.
MYEG Ventures owns a 51% stake in MYEG Philippines Inc, in which Zetrix AI already holds a direct 49% interest.
Upon completion, Zetrix AI’s effective interest in MYEG Philippines will rise to 74.5%, comprising its existing 49% direct stake and a 25.5% indirect interest through MYEG Ventures.
MYEG Philippines will consequently become a subsidiary of Zetrix AI and its financial results will be consolidated into the group’s accounts.
Zetrix AI said the acquisition would strengthen its presence in the Philippines and support its broader Asean expansion strategy, while allowing the group to leverage its blockchain and artificial intelligence products and services in the market.
The acquisition is expected to contribute positively to the group’s net assets per share and earnings per share for the financial year ending Dec 31, 2026 onwards, without materially affecting its gearing.
