Wong's Zetrix AI stake declines; no longer a substantial shareholder of Excel Force

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Zetrix AI stake declines

Highlights

Wong disposed of 46.88 million Zetrix AI shares at 7.5 sen per share, worth approximately RM3.52 million, on 8 Oct, reducing his stake to 4.898%.
Wong's total stake in Zetrix AI fell 72% to 651.14 million shares due to forced disposals driven by margin pressure, threatening his bond covenant position.
Zetrix AI has lost 90% of its market value since August, hit a 13-year low of 6.5 sen, and was placed under MARCWatch Developing by MARC Ratings.

This article was translated from the original. Read the original version by our correspondent here.

Share disposal details and ownership position

As reported by The Edge Malaysia, citing filings with Bursa Malaysia, Wong sold a further 46.88 million Zetrix AI shares at 7.5 sen per share on Thursday, 8 Oct, valued at approximately RM3.52 million. Following the transaction, his direct stake fell to 4.898%, or 386.83 million shares, while his indirect stake through Asia Internet Holdings Sdn Bhd stood at 3.347%, or 264.31 million shares.

Wong's total stake in Zetrix AI has fallen 72% to 651.14 million shares from 2.33 billion shares before the sales began in late August. He recently told The Edge Weekly that he may take legal action over developments that have weighed on the company's share price, alleging the possibility of collusion and price manipulation, while insisting that the disposals were forced rather than voluntary.

In a separate filing on Friday, Wong also ceased to be a substantial shareholder of Excel Force MSC Bhd after disposing of 24.05 million shares on 5 Oct. As of 8 Oct, he held 38.57 million shares, or a 6.324% direct stake, in Excel Force, in addition to nearly 12 million shares, or a 1.967% indirect stake, through Asia Internet Holdings Sdn Bhd.

Before the sale, he had a 24.142% direct interest and a 6.772% indirect interest in Excel Force, making him the company's largest shareholder. In September, he also ceased to be a substantial shareholder of Cuscapi Bhd after disposing of approximately 103.6 million shares, equivalent to nearly an 11% stake in the company.

Market pressure and implications for the company

Zetrix AI has lost approximately 90% of its market value since late August and hit a 13-year low of 6.5 sen on 5 Oct. The decline followed reports involving its subsidiary MyEG and the suspension of its role as a JPJ collection agent over RM314 million in arrears.

MARC Ratings placed Zetrix AI's rating under MARCWatch Developing after Wong's stake fell sharply, largely due to margin calls. The reduction in his stake leaves him with less room to meet bond covenants requiring him to remain the group's largest shareholder.

Zetrix AI shares closed one sen, or 13.33%, higher at 8.5 sen on Friday, valuing the group at RM686.7 million. Meanwhile, Excel Force shares were unchanged at 15 sen, with a market valuation of RM91.5 million; the company provides IT solutions for stockbroking firms and investment banks.

In our earlier article on MMM Group Bhd, which faces delisting on 12 Oct, we reported that the company's appeal to overturn the rejection of its regularisation plan had been dismissed, thereby maintaining its PN17 status and resulting in its removal from Bursa Malaysia. We also discussed the implications for investors as the company continues operations as an unlisted entity, alongside ongoing restructuring constraints and significant financial pressure.

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