Acquisition Details

Zetrix AI Bhd has entered into a share purchase agreement to acquire a 50% stake in MYEG Ventures Inc for RM130 million, according to a bourse filing. The deal, signed on Sept 1 with Next Lion Ltd, involves the acquisition of 15.25 million ordinary shares in MYEG Ventures, a Philippine-based information technology services provider. The payment will be settled through a combination of cash and the issuance of up to 360.57 million new ordinary shares in Zetrix AI.

The acquisition is expected to be completed within three months after all conditions precedent are met, on a date to be mutually agreed between the parties.

Impact on MYEG Philippines

MYEG Ventures 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 purchase was driven by its strategic expansion plans in the Philippines, with the group aiming to strengthen its presence in the market, broaden its business operations and customer base, and support long-term growth plans.

The group said the purchase took into consideration the potential market size in the Philippines for new services related to its blockchain and AI platform, such as ZTrade, Digital Identity Verifier, and Avatar AI. Zetrix AI also highlighted economic potential from an agreement between MYEG Philippines, its joint venture with Mimos Bhd, and the Philippine government to implement public blockchain infrastructure based on the Zetrix protocol with the Department of Information and Communications Technology (DICT).

Trading Halt and Market Context

Trading in Zetrix AI shares was halted by Bursa Securities for one hour and is scheduled to resume at 10am on Wednesday. The counter last traded at 26.5 sen, which was noted as its lowest level in 12 years, after a price decline since last week.