KUALA LUMPUR: Zetrix AI Bhd is acquiring a 50 per cent stake in Philippines-based MYEG Ventures Inc for RM130 million, a deal that will turn MYEG Philippines Inc into its subsidiary.

In a Bursa Malaysia filing, the technology company said it entered into a share purchase agreement with British Virgin Islands-based Next Lion Ltd on Sept 1 to acquire 15.25 million shares in MYEG Ventures.

MYEG Ventures currently holds a 60 per cent stake in MYEG Philippines, which is an associate company of Zetrix AI.

"Upon completion of the proposed acquisition, MYEG Philippines will become a subsidiary of Zetrix AI," the company said.

The RM130 million purchase consideration will be satisfied through a combination of cash and the issuance of up to 360.57 million new Zetrix AI shares.

The issue price will be determined later based on the five-day volume-weighted average market price of Zetrix AI shares prior to the issuance.

Zetrix AI said the acquisition would strengthen the group's strategic direction and support its expansion into the Philippines.

It said the deal would allow the group to deepen its presence in the Philippine market, expand its operations and customer base, and build a stronger platform for future regional growth.

Barring unforeseen circumstances, the acquisition is expected to be completed within three months after all conditions precedent are fulfilled.

Trading in Zetrix AI shares was suspended for an hour from 9am to 10am today.

At the midday break, the stock was down 2.5 sen, or 9.43 per cent, at 24 sen, with 459.50 million shares changing hands. This gave the company a market capitalisation of RM1.93 billion.