KUALA LUMPUR (Sept 18): The proposed merger between Mercury Securities Sdn Bhd and JP Apex Securities Bhd, a unit of Apex Equity Holdings Bhd, has hit another stumbling block.
The High Court today invalidated the resolutions relating to the merger that had been passed by Apex Equity’s shareholders at an extraordinary general meeting (EGM), after allowing a counterclaim by Pinerains Sdn Bhd. Pinerains owned a 4.17% stake in Apex Equity as at March 29.
Apex Equity had received the nod from 54.8% of its shareholders at the EGM held on June 19.
Today’s decision by High Court judge Azizul Azmi Adnan was made on grounds that the circular to Apex Equity sharholders 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.
The decision was made following an intervention by Pinerains against a vesting order application by Apex Equity, to proceed with the merger.
Pinerains had applied to the court on July 10 to invalidate Apex Equity’s June 19 EGM resolutions, in respect of the proposed JF Apex-Mercury merger and a private placement of 20 million shares in Apex Equity.
Apex Equity was represented by lawyer Mak Lin Kum, while appearing for Pinerains were Ranjit Singh and Mohd Izral Khairy.
Shares of Apex Equity closed 8 sen or 9.3% lower at 78 sen today, giving the group a market capitalisation of RM166.58 million.