Friday 29 Mar 2024
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This article first appeared in The Edge Financial Daily on June 4, 2019

KUALA LUMPUR: The Securities Commission Malaysia (SC) has affirmed that the RM140 million proposed merger between Apex Equity Holdings Bhd’s subsidiary JF Apex Securities Bhd and Mercury Securities Sdn Bhd can proceed.

This is made possible after the regulator varied its decision to decouple three conditions imposed earlier requiring Apex Equity’s single largest shareholder ACE Investment Bank Ltd (ACE IB) to dispose of its entire 24% stake within six months and have its representatives exit the board of the company, upon completion of the merger.

“Yes, Apex Equity can proceed with the proposed merger subject to it meeting the condition set by the SC on May 27. As mentioned, the conditions for the proposed merger have been decoupled and the SC will pursue the compliance of these conditions with ACE IB separately,” the spokesman explained.

With regard to the fourth condition SC imposed, where the proposed merger should not have “adverse record from the vetting which is currently pending”, the spokesperson said this will be the only condition retained for SC’s approval.

“This is the only condition retained on the SC’s approval for the proposed merger and is a requirement imposed on all licensed entities under the SC.

“Under section 64 and [section] 65 of the CMSA (Capital Markets and Services Act) as well as the Licensing Handbook, all licensed entities and controllers, directors, managers, chief executives and licensed representatives of a licensed entity are required to be fit and proper at all times,” the spokesman explained.

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