KUALA LUMPUR (Sept 30): Zetrix AI Bhd (KL:ZETRIX) and IPVG Employees Inc have agreed to extend by three months the deadline to complete the Malaysian company's purchase of a 50% stake in Philippines-based MyEG Ventures Inc.
The digital services provider said in a bourse filing that both sides agreed to complete the share purchase agreement at the end of the fourth quarter.
The purchase was originally scheduled to be concluded on Wednesday — the end of the third quarter of this year.
“The extension of time is mainly to accommodate the longer time required by the parties to complete the condition precedent set out in the SPA,” said Zetrix Ai.
The RM130 million deal is Zetrix AI's second attempt to buy into MyEG Ventures. On Sept 1, the company announced it would acquire the 50% stake from Next Lion Ltd, whose sole shareholder and director is Yap Shon Leong.
On Sept 4, Zetrix AI terminated that agreement, citing a review of the commercial rationale due to volatility in the price of the consideration shares, after Bursa Malaysia issued two rounds of queries. Neither party was to pay a break fee.
The company later said the Next Lion deal collapsed over a dispute on the issue price of the consideration shares. Zetrix AI signed the new agreement with IPVG Employees the same day, and announced it on Sept 7.
IPVG Employees, led by Filipino entrepreneur Jaime Enrique Y Gonzalez, holds 9.4% of MyEG Ventures. It is to buy a further 40.6% from IP Ventures Inc, Shennan A Sy, Edward Derrick P Chiongbian and Kaikaku Fund LP before selling the 50% stake to Zetrix AI.
If completed, Zetrix AI's effective interest in MYEG Philippines would rise to 74.5% from 49%, allowing it to consolidate the unit's results as a subsidiary. The company has said it will not pay the consideration until all conditions are met, including registration of the 50% stake in its name.
Bursa Malaysia questioned the valuation of MYEG Philippines in a third set of queries on Sept 8. MYEG Philippines recorded an average annual profit after tax of PHP21.6 million (about RM1.4 million) over the three financial years ended 2025, and its net assets were about RM20 million at end-2025.
The company had said IPVG was expected to complete its purchase of the remaining 40.6% by the end of the third quarter of 2026.
The deal occurred during a sharp selldown of Zetrix AI's shares. The company lost two-thirds of its market capitalisation between Aug 27 and Sept 2 when the stock hit a 12-year low of 22 sen amid a margin call on managing director Wong Thean Soon, who now holds a 6.1% direct and 4.78% indirect stake.
Shares of Zetrix AI were down by half a sen or 3% to 16 sen at the end of Wednesday’s trading day, valuing the group at RM1.29 billion. Year-to-date, its shares have dropped by 80.25%.