Bursa asks Zetrix AI to justify RM130m valuation for MYEG Ventures in third query on deal
TheEdge Wed, Sep 09, 2026 10:49pm - 34 minutes


KUALA LUMPUR (Sept 9): Bursa Malaysia Securities has sought further clarification from Zetrix AI Bhd (KL:ZETRIX) on its RM130 million valuation for the proposed acquisition of a 50% stake in MYEG Ventures Inc through IPVG Employees Inc, marking its third set of queries on the deal.

The latest query dated Sept 8, among other things, focused on the valuation, given that MYEG Philippines Inc — which is 51%-owned by MYEG Ventures — recorded an average annual profit after tax of only PHP21.6 million (about RM1.4 million) for the three financial years ended 2025, while its net assets stood at about RM20 million as at end-2025.

In its response, Zetrix AI said the RM130 million consideration was primarily based on a discounted cash flow valuation, taking into account MYEG Philippines’ projected earnings, future growth, existing and potential projects, as well as the strategic value of its digital services in the Philippines.

The company said historical earnings and net assets did not fully reflect MYEG Philippines’ future earning capacity, intangible value and growth potential.


The valuation was also assessed against forward price-to-earnings multiples over the next five years, although Zetrix AI did not disclose the multiple used.

The proposed acquisition would give Zetrix AI an additional effective 25.5% interest in MYEG Philippines, raising its total effective interest to 74.5% from 49% currently. Subject to meeting MFRS 10 requirements, MYEG Philippines could subsequently be consolidated as a subsidiary of Zetrix AI.

Beyond the valuation, Bursa Malaysia wanted Zetrix AI to explain why the transaction was structured through IPVG instead of directly with MYEG Ventures’ shareholders, whether IPVG has agreements to acquire the remaining 40.6% stake, and when that prerequisite acquisition will be completed.

Bursa Malaysia also sought clarification on why Zetrix AI terminated its earlier deal with Next Lion Ltd over share-price volatility but entered into a similar RM130 million deal with IPVG on the same day.

Zetrix AI in response said the deal was structured through IPVG because of a dispute with Next Lion over the issue price of the shares to be issued as part of the purchase consideration. Buying through IPVG allows Zetrix AI to acquire the 50% stake in MYEG Ventures in a single transaction, making the process more efficient and supporting its expansion in the Philippines.

IPVG is expected to complete the purchase of the remaining 40.6% stake by the end of the third quarter of 2026 and has an arrangement with the other shareholders to do so. Zetrix AI also stressed that it will not pay the RM130 million until all conditions are met, including the 50% stake being officially registered in Zetrix AI’s name.

The company said the earlier agreement with Next Lion, whose sole shareholder and director is Yap Shon Leong, was terminated following a dispute over the issue price of the shares to be issued as part of the purchase consideration.

Zetrix AI said it was able to proceed with Filipino entrepreneur Jaime Enrique Y Gonzalez-led IPVG on the same day because the latter accepted the proposed consideration structure despite the share price volatility.

Zetrix AI said it will fund about 78% of the RM130 million purchase through the issuance of 360.57 million new shares at 28 sen each, with the remaining RM29 million to be paid in cash from internally generated funds.

The issue price represents a 4.1% discount to Zetrix AI’s five-day volume-weighted average market price of 29.21 sen up to Sept 3.

The RM130 million deal was revived on Sept 4, the same day Zetrix AI terminated an earlier agreement with Next Lion for the same stake and consideration.

Shares of Zetrix AI fell 3.5 sen or 11.5% to 27 sen at Wednesday’s market close, giving the company a market capitalisation of RM2.18 billion.

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