Zetrix AI extends MyEG Ventures acquisition deadline by three months
The RM130 million transaction is now due for completion at the end of the fourth quarter, with conditions still outstanding.
Zetrix AI Bhd and IPVG Employees Inc have given themselves another three months to complete a transaction under which Zetrix AI would acquire 50% of Philippines-based MyEG Ventures Inc for RM130 million.
In a bourse filing, the digital services provider said completion had been moved from the end of the third quarter to the end of the fourth quarter. It said the parties needed more time to fulfil a condition precedent under the share purchase agreement.
IPVG Employees, headed by Filipino entrepreneur Jaime Enrique Y Gonzalez, owns 9.4% of MyEG Ventures. Before transferring the 50% holding to Zetrix AI, it is to acquire another 40.6% from IP Ventures Inc, Shennan A Sy, Edward Derrick P Chiongbian and Kaikaku Fund LP.
The transaction follows an earlier agreement with Next Lion Ltd, announced on Sept 1 and terminated on Sept 4. Zetrix AI initially cited a reassessment of the commercial rationale amid consideration-share price volatility. It subsequently said the parties had disagreed over the issue price of those shares.
Zetrix AI entered into the replacement agreement with IPVG Employees on Sept 4 and disclosed it on Sept 7. Completion would increase its effective holding in MYEG Philippines from 49% to 74.5%, enabling subsidiary consolidation.
The company said payment would only be made after every condition had been fulfilled, including registering the 50% holding under Zetrix AI's name.
