Thursday 28 Mar 2024
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KUALA LUMPUR (Dec 18): Apex Equity Holdings Bhd and its wholly-owned JF Apex Securities Bhd have inked a business merger agreement (BMA) with Mercury Securities Sdn Bhd today, following a preliminary agreement they entered into on Sept 21.

Under the BMA, Apex Equity will be taking over Mercury Securities’ stockbroking, corporate advisory and other related businesses for RM140 million, and transferring them to JF Apex.

Of the proposed consideration, RM48 million will be settled in cash, while RM92 million will be satisfied via the issuance of new shares, according to Apex Equity’s stock exchange filing.

Apex Equity will be placing out 20 million new shares or 10% of its existing issued share capital to seven individuals at an issue price of 94 sen a share, to part finance the cash portion.

The seven are Tay Thiam Song, Chua Ching Siang, Yeo Soo Sia @ Yeo Soo Seng, Tay Kia Hong & Sons Sdn Bhd, Lim Seat Hoe, Andrew Tan Jun Suan and Datuk Ong King Seng, whom Apex Equity also inked share subscription agreements with yesterday. None of them are connected to either Apex Equity or Mercury Securities.

As the merger materialises, Apex said it will pay RM22 million to Mercury Securities within three market days, followed by the issuance of 100 million new shares at the issue price of 92 sen per share to Mercury Securities within 10 market days.

The final tranche of payment will be RM26 million cash within 10 market days, after fulfilling all pre-requisite conditions before the deal, including shareholders’ approval from both parties and Securities Commission’s approval.

Shares of Apex Equity last traded on Dec 10 at 91 sen, which valued the group at RM184.4 million.

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