Zetrix AI’s Philippine acquisition is back on again
Zetrix AI has revived its plan to acquire a 50% stake in its Philippine associate, MyEG Ventures, for RM130 million after a previous attempt was scrapped due to market volatility. The company intends to use this acquisition to support its strategic expansion into the Philippine market.
Why it matters
The deal highlights the complexities of cross-border corporate acquisitions and the impact of share price volatility on strategic business decisions.
BURSA SGX Home M&A Make The Edge Malaysia your preferred source on Google KUALA LUMPUR (Sept 7): Zetrix AI Bhd (KL: ZETRIX ) said on Monday it will acquire the remaining 50% of its Philippine associate for RM130 million after scrapping the deal last week.
IPVG Employees Inc has agreed to acquire 40.6% of MyEG Ventures Inc from the other shareholders and sell the total 50% to Zetrix AI, the company said in an exchange filing. Zetrix AI will finance about 78% of the acquisition cost with share issuance and the remaining RM29 million with internal cash.
The proposed acquisition is intended to strengthen its “strategic blueprint and support its expansion into the Philippines”, the company reiterated.
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