KUALA LUMPUR (Aug 20): The High Court today allowed Pinerains Sdn Bhd, a shareholder of Apex Equity Holdings Bhd, to intervene in a vesting order application relating to the merger of Apex Equity's unit and Mercury Securities.

Judge Azizul Azmi Adnan allowed Pinerain's application and set Thursday for next case management to hear further submissions, before making a decision. 

The vesting order is required in a merger exercise to transfer to — and vest in — one party all of another party’s rights, assets and liabilities.

Apex Equity lawyer Mak Lin Kum told theedgemarkets that Pinerains had to drop its initial suit against Apex, to be able to intervene in the application.

"You cannot make the same argument in two different cases. The judge said there has to be an election, so they agreed to drop the earlier suit," he said.

Pinerains initially filed a suit on July 5, claiming that the circular issued for the proposed merger between Apex's subsidiary JF Apex Securities and Mercury Securities is misleading.

Pinerains’ lawyer Ranjit Singh confirmed that the company has been allowed to intervene in the application. Pinerains owns a 4.17% stake in Apex Equity.

Meanwhile, the High Court today also fixed Sept 13 for case management on an application by Concrete Parade Sdn Bhd, a minority shareholder of Apex Equity, for a stay of execution on costs pending an appeal on its suit with Apex Equity.

On Aug 7, Judge Azizul dismissed the originating summons filed by Concrete Parade against Apex Equity and 15 others, over the proposed merger with Mercury Securities, as well as past corporate exercises.

Azizul allowed costs totalling RM405,000, which include RM75,000 directed to Apex Equity and its wholly-owned unit JF Apex Securities Bhd, and RM30,000 to Mercury Securities.