KUALA LUMPUR (Feb 22): The Securities Commission Malaysia has green lighted the proposed merger of Apex Equity Holdings Bhd unit JF Apex Securities Bhd with Mercury Securities Sdn Bhd.

In a bourse filing today, Apex Equity said the SC had approved the proposed merger via a letter dated Feb 21.

On Dec 18 last year, Apex Equity said the group together with JF Apex Securities inked a business merger agreement (BMA) with Mercury Securities Sdn Bhd, following a preliminary agreement entered into on Sept 21. Under the BMA, Apex Equity will take 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, and the balance RM92 million via the issuance of new shares.

To finance part of the portion, Apex Equity will place 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.

Additionally, Apex Equity said the SC had also given approval for the change in controller of JF Apex as a result of the proposed merger, variation of the licence of JF Apex to include advising on corporate finance, as well as the appointment of Chew Sing Guan as Chief Executive and Licensed Director of JF Apex.

Apex Equity closed 0.5 sen or 0.5% lower at 99.5 sen, for a market capitalisation of RM201.63 million.