KUALA LUMPUR (Sept 2): Zetrix AI Bhd (KL:ZETRIX) is acquiring a 50% stake in Philippines-based information technology services provider MYEG Ventures Inc for RM130 million via a cash-and-share deal.
In a bourse filing, the digital services provider said it entered into a share purchase agreement with Next Lion Ltd on Sept 1 to acquire 15.25 million ordinary shares in MYEG Ventures. Next Lion's sole shareholder and director is Yap Shon Leong.
MYEG Ventures is principally involved in providing information technology services. It holds a 60% stake in MYEG Philippines Inc. Upon completion of the acquisition, MYEG Philippines will become a subsidiary of Zetrix AI.
Zetrix AI said the acquisition is aimed at strengthening the group’s expansion strategy in the Philippines by establishing and enhancing its presence in the market.
It is also expected to broaden the group’s business operations and customer base, complement its existing business strategies and support its long-term growth plans in the country.
Zetrix AI plans to fund the acquisition through a combination of cash and the issuance of up to 360.57 million new ordinary shares in the group.
Barring any unforeseen circumstances, the acquisition is expected to be completed within three months after all the conditions precedent have been met, on a date to be mutually agreed between Zetrix AI and Next Lion.
Trading in Zetrix AI was halted for one hour and is scheduled to resume at 10am on Wednesday. The counter last traded at 26.5 sen, its lowest level in 12 years, after coming under heavy selling pressure since last week.