Zetrix AI scraps RM130m MyEG Ventures deal amid share price volatility

Thursday 01 Oct 2026

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KUALA LUMPUR (Sept 4): Zetrix AI Bhd (KL:ZETRIX) has called off its proposed RM130 million share-and-cash deal to acquire a 50% stake in Philippines-based MyEG Ventures Inc, just days after announcing the deal on Sept 1, following multiple queries from Bursa Malaysia.

In a response to Bursa Malaysia’s second query on the deal, which sought details on the company’s shareholding in MYEG Philippines, by virtue of its stake in MyEG Ventures, its accounting treatment, financial information on MYEG Philippines, as well as the issue price and number of consideration shares, Zetrix AI said it had decided to terminate the agreement.

The company cited “a review of the commercial rationale due to the share price volatility for the consideration shares” as the reason for terminating the deal with Next Lion Ltd, according to a bourse filing on Friday.

The proposed RM130 million acquisition was first announced on Sept 1 (Tuesday) and would have seen Zetrix AI acquire 15.25 million shares in MYEG Ventures, equivalent to a 50% stake, from Next Lion, whose sole shareholder and director is Yap Shon Leong.

Under the termination, both Zetrix AI and Next Lion will be released from their obligations under the agreement, with no break fees or penalties payable by either party.

The company, formerly known as MyEG Services Bhd, said the termination would not materially affect its paid-up capital, substantial shareholders’ shareholdings, earnings per share, net assets per share or gearing. The board considers the decision to be in the best interests of the company.

As recently as Sept 2, when Zetrix AI’s share price hit a fresh 12-year low of 22 sen, the company was still defending the valuation of the deal and its plan to determine the issue price of the consideration shares at a later date, citing share price volatility in response to Bursa Malaysia’s first round of queries.

Bursa Malaysia had asked Zetrix AI on Sept 2 to clarify the ownership structure and accounting treatment of the proposed acquisition, including its stake in MYEG Ventures and MYEG Philippines before and after the deal, in its first round of queries on the deal. It also sought details on how the RM130 million purchase price was determined, the share-and-cash payment structure and funding, MYEG Ventures’ financials, and the expected timeline for completing the acquisition.

Zetrix AI had responded that it was yet to determine the issue price of the new shares that would make up most of the RM130 million consideration, citing volatility in its share price.

The deal was to be funded mainly through the issuance of up to 360.57 million new Zetrix AI shares, with the remaining amount to be paid in cash from internal funds. The issue price was to be based on Zetrix AI’s five-day volume-weighted average price immediately before the shares were issued.

Zetrix AI said the RM130 million purchase consideration was based on its internal valuation of MyEG Ventures, taking into account MYEG Philippines’ financial performance, growth prospects and five-year projections.

The company had said the acquisition would give it greater control of MYEG Philippines, create potential synergies and economies of scale, and support its expansion in the Philippines and wider Asean region.

In response to Bursa Malaysia’s second round of queries on Sept 3, Zetrix AI on Sept 4 said it planned to consolidate MYEG Philippines’ financial statements into the group’s accounts following completion of the acquisition.

According to information disclosed by Zetrix AI, MYEG Philippines recorded a profit after tax of 32.27 million Philippine pesos on revenue of 362.52 million pesos for the financial year ended Dec 31, 2025. It reported earnings per share of 0.82 pesos.

However, in response to Bursa Malaysia’s second query on the issue price and number of consideration shares, Zetrix AI said its board had opted to terminate the agreement following a review of its commercial rationale in light of the volatility in its share price.

Shares of the digital services firm had come under heavy selling pressure since late last week, hitting a low of 22 sen on Sept 2, a day after the deal was announced.

The stock has rebounded over the past two days, closing 6.25% higher at 25.5 sen on Friday, giving the company a market capitalisation of about RM2 billion. However, the stock remains down nearly 69% year to date.

In a separate announcement on Friday, HeiTech Padu Bhd (KL:HTPADU) announced that Zetrix AI's unit MY EG Capital Sdn Bhd had disposed of its entire 27.5 million shares, or a 16.9% stake, in the company.

Bloomberg data showed that five blocks of HeiTech Padu shares, totalling 27.5 million shares, changed hands at RM1 each on Sept 2, representing a 2.56% premium to the counter’s closing price of 97.5 sen that day. The transactions were worth a combined RM27.5 million.

Edited ByPresenna Nambiar

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