This article first appeared in The Edge Financial Daily on October 3, 2019

KUALA LUMPUR: Apex Equity Holdings Bhd said it will be seeking the approval of its shareholders once again for the proposed merger of its unit JF Apex Securities Bhd with Mercury Securities Sdn Bhd, after the High Court here invalidated the resolutions for the merger.

On Sept 18, the High Court invalidated the resolutions relating to the merger, which had been passed by Apex Equity’s shareholders at an extraordinary general meeting (EGM), after allowing a counterclaim by Pinerains Sdn Bhd, which owns a 4.17% stake in Apex Equity.

The High Court’s decision was made on grounds that the circular to Apex Equity shareholders on the proposed merger was opaque. As such, Apex Equity will have to issue a fresh circular and call for another EGM, if it were to proceed with the merger proposal.

Besides seeking the shareholder’s approval again for the proposed merger, Apex Equity will also be seeking approval for a proposed private placement, as well as a proposed alteration of the existing merger and acquisition in its entirety, the group updated in a bourse filing yesterday.

The approvals will be sought at a general meeting to be convened on a date to be announced later.

“The circular to shareholders containing information on the proposed alteration and the proposals will be despatched to shareholders in due course,” Apex Equity said.

Apex Equity shares closed unchanged yesterday at 80 sen, giving the group a market capitalisation of RM162.11 million. The stock has retreated nearly 14% in the past year.