KUALA LUMPUR (June 30): All proceedings in relation to the action from the Securities Commission Malaysia (SC) on ACE Holdings Bhd’s attempt to take over Apex Equity Holdings Bhd have been stayed.
In a Bursa Malaysia filing on Friday (June 30), Apex Equity said the suit's proceedings are by law stayed pending an order for leave after ACE Holdings applied in March with the High Court’s commercial division to be placed under judicial management.
The stockbroking firm said the High Court has fixed Sept 7 for the next case management for ACE Holdings to update the High Court on the status of its judicial management proceedings.
ACE is trying to get Datuk Robert Teo Keng Tuan from RSM Corporate Restructuring (Malaysia) Sdn Bhd to be appointed as its judicial manager, and to be placed under judicial management for six months.
Last Dec 1, Apex Equity said the SC is seeking a court declaration that its subsidiary Apex Securities Bhd has contravened securities laws, and that ACE Holdings, which is part of the ACE Group, has been knowingly involved in the contravention.
The SC claimed that Apex Securities contravened the securities laws "as ACE has become a controller of Apex Securities, when ACE is not a fit and proper person" to do so.
The regulator is seeking a court order to refrain ACE from being a controller, not just of Apex Securities, but of any holder of a capital markets services licence (CMSL). It also wants ACE to remove relevant directors and senior management personnel from Apex Equity and Apex Securities.
In response, ACE Group and Apex Securities are seeking leave from the High Court for a judicial review to challenge the SC's decision to impose "additional conditions" in respect of Apex's CMSL.
Apex Securities is seeking a declaration that the SC's decision to impose the additional conditions, pursuant to Section 62 of the Capital Markets and Services Act (CMSA), is null and void.
Apex Securities is also seeking to quash the market regulator's decision as it claims that the conditions were issued wrongly, irrationally and illegally.
Since then, ACE Holdings has disposed of its shares in the brokerage. The shares, amounting to 25.6% equity interest, had been largely held by ACE Credit Sdn Bhd and through a fund.
Apex Equity shares settled unchanged at RM1.18 on Friday, valuing the group at RM252 million.