KUALA LUMPUR: Trading in the shares of Zetrix AI Bhd has been halted until 10am on Wednesday, in light of the announcement it is acquiring 15.25 million shares in MYEG Ventures Inc for RM130mil in cash and shares.
The digital services firm said in a late-Tuesday filing with the stock exchange it was acquiring the shares from Next Lion Ltd via cash and the issuance of 360.57 million shares in Zetrix AI.
MYEG Ventures has a 60% shareholding in MYEG Philippines Inc, an associate company of Zetrix AI.
Upon completion of the proposed acquisition, MYEG Phillipines Inc will become a subsidiary of Zetrix AI.
The group said the purchase took into consideration the potential market size in the Philippines to rollout new services related to its blockchain and AI platform such as ZTrade, Digital Identity
Verifier and Avatar AI.
It said there was also economic potential from the signing of an agreement between MYEG Philippines, Zetrix AI's joint venture with Mimos Bhd, and the Philippines government to implement and operationalise the public blockchain infrastructure of the Philippines based on Zetrix protocol with DICT.
"The proposed acquisition will provide the group with an opportunity to establish and enhance its
presence in the Philippine market, broaden its business operations and customer base, and
create a stronger platform for future growth in the region.
"It is also expected to complement the group’s existing business strategies and facilitate the implementation of its long-term expansion plans in the Philippines," it said.