KUALA LUMPUR: Zetrix AI Bhd has launched a fresh RM130 million bid for a 50 per cent stake in MyEG Ventures Inc on the same day it terminated an earlier agreement to buy the stake.
The latest proposal follows Zetrix AI's termination on Sept 4 of an earlier agreement with Next Lion Ltd to buy a 50 per cent stake in MyEG Ventures for RM130 million.
Under the latest arrangement, IPVG Employees Inc will first buy a 40.6 per cent interest in MyEG Ventures from its other shareholders before selling its entire 50 per cent stake to Zetrix AI.
Zetrix AI said in a filing with Bursa Malaysia on Friday that it entered into a share purchase agreement with IPVG Employees on Sept 4 to buy 15.25 million shares in MyEG Ventures, representing a 50 per cent stake.
MyEG Ventures, a Philippines-based information technology service provider, holds a 51 per cent stake in MYEG Philippines Inc, an associate of Zetrix AI.
Zetrix AI currently owns a direct 49 per cent interest in MYEG Philippines.
The proposed acquisition will give it an additional 25.5 per cent indirect interest through MyEG Ventures, raising its effective interest in MYEG Philippines to 74.5 per cent.
MYEG Philippines will consequently become a subsidiary of Zetrix AI, with its financial statements to be consolidated into the group's accounts upon completion.
The RM130 million will be satisfied through the issuance of 360.57 million new Zetrix AI shares at 28 sen each, valued at RM100.96 million.
The remaining RM29.04 million will be paid in cash from internally generated funds.
The issue price represents a 4.1 per cent discount to Zetrix AI's five day volume weighted average market price of 29.21 sen up to Sept 3, the last trading day before the issue price was fixed.
Zetrix AI said the proposed acquisition intends to strengthen its presence in the Philippines, broaden its business operations and customer base and support its longer term expansion plans in the region.
The group also expects greater control over MYEG Philippines, as well as potential synergies and economies of scale from integrating its operations with the group's existing businesses and capabilities, particularly by leveraging its blockchain and artificial intelligence platform products and services.
Zetrix AI said MYEG Philippines' revenue and profit had increased over the past five years, while its growth prospects were supported by financial projections for the next five years.
Upon completion, Zetrix AI's issued share capital will increase to 8.42 billion shares from 8.06 billion currently, following the issuance of the consideration shares.
The acquisition is expected to have a positive impact on the group's net assets per share and earnings per share for the financial year ending Dec 31, 2026 onwards, while having no material impact on gearing.
Completion is subject to several conditions, including IPVG Employees completing the prerequisite acquisition of the 40.6 per cent stake and settling any advances owed by MYEG Ventures to IPVG or related parties.
The transaction is expected to be completed by the end of the third quarter of 2026.
