KUALA LUMPUR (Sept 7): Zetrix AI Bhd (KL:ZETRIX) will acquire a 50% stake in MyEG Ventures Inc for RM130 million, reviving the deal after scrapping last week’s agreement, but this time from a different seller.

IPVG Employees Inc, which currently owns 9.4% of MyEG Ventures, will first buy another 40.6% stake from other shareholders before selling the full 50% stake to Zetrix AI, the company said in an exchange filing.

Zetrix AI will finance about 78% of the RM130 million deal through new shares, while the remaining RM29 million will be paid in cash. 

The proposed acquisition is intended to strengthen its “strategic blueprint and support its expansion into the Philippines”, the company reiterated.

The transaction comes after a plan announced on Sept 1 to acquire MyEG Ventures was scrapped just three days later. Under the previous cash-and-share deal, Zetrix AI was to acquire a 50% stake in MyEG Ventures from Next Lion Ltd for the same price before it was terminated. 

Shares of Zetrix AI started trading with a one-hour delay on Monday, and ended the day up 1.5 sen to 27 sen post-announcement. Zetrix AI had lost two-thirds of its entire market capitalisation between Aug 27 and Sept 2 amid a margin call on its managing director Wong Thean Soon.

He is the single-largest shareholder of Zetrix AI with a nearly 30% stake, making any forced selling on his account leading to outsized impact on the stock. The company said on Sept 4 that the deal with Next Lion had to be scrapped due to share price volatility.

This time around, IPVG Employees will first buy out other shareholders IP Ventures Inc, Shennan A Sy, Edward Derrick P Chiongbian and Kaikaku Fund LP before selling the stake in MyEG Ventures to Zetrix AI.

Next Lion will keep its 50% stake in MyEG Ventures, which in turn holds 51% equity interest in MYEG Philippines Inc that provides online government services. IPVG Employees is led by Filipino entrepreneur Jaime Enrique Y Gonzalez.

Zetrix AI will issue 360.57 million shares fixed at 28 sen apiece to fund the purchase. If the deal goes through, Zetrix AI would have an effective 74.5% in MYEG Philippines, comprising its 49% direct interest and an additional 25.5% indirect interest through its shareholding in MyEG Ventures.

MYEG Philippines will turn into a subsidiary, allowing Zetrix AI to consolidate its results.

Zetrix AI believes that a greater control of MYEG Philippines is justified based on its growth prospects.

The company also highlighted “potential synergies and economies of scale arising from the integration of MYEG Philippines with the group’s existing businesses and capabilities to penetrate new market especially in leveraging its blockchain and AI platform products and services”.

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