KUALA LUMPUR: Zetrix AI Bhd announced that the proposed acquisition by Philippine-based corporate entity IPVG Employees Inc of a 50 per cent equity interest in MYEG Ventures Inc is commercially viable.
In a Bursa Malaysia filing today, Zetrix AI said the proposed acquisition enables the company to establish a meaningful strategic interest in MYEG Ventures.
"This is aligned with our strategy to strengthen our presence and expand our business operations in the Philippines,” said the digital services and e-government solutions provider.
The clarification was made in response to an enquiry letter from Bursa Malaysia dated Sept 8, regarding the share purchase agreement entered into between Zetrix AI and IPVG.
Zetrix AI said the transaction was restructured through IPVG as there was a dispute with Next Lion Ltd on the issue price of the shares to be issued as part of the purchase consideration.
"IPVG represents a strategic vehicle through which the company can acquire an aggregate 50 per cent equity interest in MYEG Ventures in a single transaction.
"The structure provides the company with a more efficient and streamlined mechanism to consolidate the relevant shareholding in MYEG Ventures, as opposed to undertaking separate negotiations and transactions with the individual shareholders of MYEG Ventures,” it said.
Zetrix AI said IPVG has an arrangement to purchase the remaining 40.6 per cent equity interest in MYEG Ventures from the other shareholders.
The completion of the prerequisite acquisition is expected to take place concurrently with the completion of the proposed acquisition and is expected to be completed by the end of the third quarter of 2026.
Upon completion of the acquisition, MYEG Ventures will be an investment at Zetrix’s company level and will be eliminated upon consolidation, as the equity interest in MYEG Ventures will form a controlling stake in MYEG Philippines Inc, which will be consolidated as a subsidiary at group level in accordance with the applicable Malaysian Financial Reporting Standards.
The purchase consideration of RM130.0 million was determined based on an internal valuation undertaken by the company, taking into consideration the underlying value of MYEG Ventures and its principal underlying investment in MYEG Philippines.
On Sept 4, Zetrix AI terminated a RM130 million agreement with Next Lion Ltd to purchase 15.25 million ordinary shares in MYEG Ventures, representing a 50 per cent equity interest.
It terminated the deal after reviewing the commercial rationale, citing volatility in the share price of the consideration shares. - Bernama
