KUALA LUMPUR (May 19): Electronic government services provider My E.G. Services Bhd (MyEG) is buying a controlling 67% stake in Essential Reviews Sdn Bhd, which owns the popular food review website EatDrinkKL, for RM1.25 million cash.
In a filing with Bursa Malaysia today, MyEG said its wholly-owned subsidiary MY E.G. Capital Sdn Bhd has entered into a shareholders agreement with Essential Reviews and its sole shareholder Sean Cornelius Yoong Wan Yen to subscribe for 50,000 shares and further purchase 75,000 shares from Yoong, collectively representing approximately 67% of the issued shares of Essential Reviews.
"The investment into Essential Reviews will allow it to expand its business in the online space, which will complement its existing commercial services," said MyEG.
The announcement confirms a report by The Edge Financial Daily on May 17 that MyEG was close to sealing a deal to buy EatDrinkKL.
Shares of MyEG closed down 5 sen or 2.28% at RM2.14 today, with 6.3 million shares traded, giving it a market capitalisation of RM7.17 billion.