Zetrix AI Wong stake falls further ahead of sukuk covenant cure deadline
The stake held by Zetrix AI Bhd managing director Wong Thean Soon continued to shrink as the company approached the 22 Oct deadline to remedy a breach of its sukuk covenants. The decline undermines efforts to maintain the requirement that he remain the company’s largest shareholder, amid financial pressure and a share price slump since August.
Highlights
- Wong disposed of 460,000 Zetrix AI shares at 5 sen per share, reducing his direct stake to 0.541%, or 42.72 million shares.
- Wong’s total stake is now 1.841%, down significantly from more than 30% before the late-August share price slump triggered margin calls.
- Zetrix AI must remedy the sukuk covenant breach by 22 Oct or risk early repayment of RM2 billion in principal and future coupon payments of RM164.5 million.
This article was translated from the original. Read the original version by our correspondent here.
Share disposal and sukuk covenant risk
As reported by The Edge Malaysia, a Bursa Malaysia filing on Wednesday showed that Wong disposed of 460,000 Zetrix AI shares the previous day at 5 sen per share, for total consideration of RM23,000.The move reduced his direct stake to 0.541%, or 42.72 million shares, while his investment vehicle, Asia Internet Holdings Sdn Bhd, holds a further 1.3%, or 102.7 million shares. In total, Wong now holds 1.841%, well below the more than 30% he once held before a sharp share price slump in late August triggered margin calls on his share-backed financing facilities.
Zetrix AI now faces a 22 Oct deadline to remedy a breach of the terms of its Islamic debt papers, which require Wong to remain the company’s largest shareholder. If the breach cannot be remedied by that date, the group will seek approval from sukuk holders for a waiver. Without a waiver, the breach could trigger early repayment of RM2 billion in principal and future coupon payments of RM164.5 million, bringing potential liabilities to RM2.16 billion.
Wong previously told The Edge Malaysia that the disposal was not voluntary and that he was considering legal action over suspected collusion and share price manipulation.
In our earlier report on Zetrix AI and MyEG’s suspension as collection agents for JPJ, we highlighted how the issue of more than RM200 million in payments allegedly not yet remitted was affecting the company’s core business flows. We also discussed the pressure on the group’s financial position and the RM2 billion sukuk risk as TS Wong’s declining stake raised concerns about covenant compliance.
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