KUALA LUMPUR (Oct 16): Zetrix AI Bhd (KL:ZETRIX) acknowledged a potential breach of a sukuk's clause that requires the digital services firm’s managing director to remain as its single-largest shareholder.
The breach, triggered by a spate of forced selling that began near the end of August and cut Wong Thean Soon’s shareholding to less than 2% now from nearly 30%, has to be remedied by Oct 22 to comply with a covenant for a RM2 billion sukuk programme, the company said in an exchange filing.
If the company fails to remedy the breach by then, “the consent and instructions or direction of the sukukholders will be sought via an extraordinary resolution of sukukholders”, Zetrix AI said.
The company added that it is currently in talks with the sukuk trustee.
Shares of Zetrix AI fell as much as one and a half sen to five sen, a new 14-year low. The stock was down by one sen or 15.38% to 5.5 sen at the end of Friday's trading session, with almost 255 million shares changing hands.
The decline since late August has wiped out more than 90% of its market capitalisation to just RM444.3 million based on the last price. Wong's combined direct and indirect stake through his private vehicle Asia Internet Holdings Sdn Bhd has fallen to 1.895%, based on the latest disclosures.
The selldown followed a series of margin calls involving Wong's share-backed financing facilities. He has previously told The Edge Malaysia weekly that the disposals were not voluntary and that he was considering legal action over suspected collusion and share price manipulation.
MARC Ratings, one of Malaysia’s two domestic rating agencies, have earlier flagged the breach of the covenant under the RM2 billion Islamic medium-term notes programme as well as concerns over Zetrix AI’s transparency and governance.
The company, formerly known as MyEG Services Bhd, is also under police investigation after failing to remit RM314 million collected from its customers as an agent of the Road Transport Department.