Zetrix AI defends MYEG Philippines deal with IPVG as Bursa queries valuation
KUALA LUMPUR: Zetrix AI Bhd said it had restructured its proposed acquisition of a 50 per cent stake in MYEG Ventures Inc from buying Next Lion Ltd’s stake to a deal with IPVG Employees Inc after a dispute with Next Lion over the issue price of the shares to be issued as part payment for the RM130 million consideration.
Zetrix AI has restructured its planned acquisition of a 50% stake in MYEG Ventures Inc. The company initially intended to buy Next Lion Ltd's share but later decided to acquire IPVG Employees Inc's share after a dispute over the issue price of shares. Bursa Malaysia questioned the valuation of the deal, to which Zetrix AI responded that the transaction was restructured due to volatility in Zetrix AI's share price, which affected the commercial rationale of the proposed consideration structure.
Zetrix AI will acquire an effective 25.5% interest in MYEG Philippines through the deal with IPVG, despite IPVG only owning 9.4% of MYEG Ventures. The acquisition is based on an internal valuation using a discounted cash flow method, considering MYEG Ventures' financial performance, financial position, future business prospects, and potential synergies.
Zetrix AI also highlighted MYEG Philippines' growth prospects, strategic value, and the potential deployment of Zetrix AI's blockchain and artificial intelligence platforms. The proposed acquisition will strengthen Zetrix AI's presence in the Philippines and enable the consolidation of MYEG Philippines' financial results at group level.
Written by urgent.news from New Straits Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
