Zetrix stake declines further as TS Wong reduces shareholding, independent director resigns

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Zetrix stake declines & director resigns

Highlights

Wong Thean Soon sold approximately 142 million Zetrix AI Bhd shares at between seven sen and 11.2 sen per share, worth RM11.6 million, reducing his stake to 3.091% direct and 3.347% indirect.
Zetrix has lost RM4.6 billion, or 88%, of its market value since late August, with shares falling 11.76% on Monday to 7.5 sen per share and its market capitalisation at RM605.9 million.
Independent director Datuk Seri Mohd Mokhtar Mohd Shariff resigned a week after MyEG Sdn Bhd was suspended as a Road Transport Department collection agent due to RM314 million in arrears.

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

Management share sale and holding details

As reported by The Edge Malaysia, citing Bursa Malaysia filings, Wong Thean Soon, or TS Wong, continued to sell his shareholding in Zetrix AI Bhd, disposing of approximately 142 million directly held shares at prices ranging from seven sen to 11.2 sen per share, with a total value of RM11.6 million.

Following the disposal, Wong held a 3.091% direct interest and a 3.347% indirect interest, remaining the company's sole substantial shareholder. His total shareholding declined by 78% to 508.41 million shares from 2.33 billion before the sales began in late August.

He previously told The Edge Weekly that he may take legal action over developments weighing on the company's share price, alleging possible collusion and price manipulation. According to him, the share disposals were forced rather than voluntary.

Impact on market value and corporate governance

Zetrix has lost approximately RM4.6 billion, or 88%, of its market value since late August, when the forced sale of Wong's shares began. On Monday, Zetrix shares fell 11.76% to 7.5 sen per share, bringing its market capitalisation to RM605.9 million, while the stock has declined by nearly 90% year to date.

In a separate filing, the company said its independent director, Datuk Seri Mohd Mokhtar Mohd Shariff, resigned on Monday due to personal commitments. The filing indicated that there were no disagreements between him and the board of directors, and no matters requiring shareholders' attention.

The 69-year-old former director of the police Special Branch joined the board on 9 Nov 2020. His resignation came a week after the government announced that its subsidiary, MyEG Sdn Bhd, had been suspended from its role as a collection agent for the Road Transport Department due to RM314 million in arrears for the period from May to September this year.

In our earlier article on the continued share sales by Zetrix AI Bhd managing director Wong Thean Soon, we explained how the disposals, partly linked to margin pressure, significantly reduced his stake as the share price continued to decline since late August. We also covered the impact of the market value decline on the company's financial position and bond covenant compliance, including rating developments and the implications for his position as the major shareholder.

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