Apex Equity proposes to merge with Mercury Securities

PETALING JAYA: Apex Equity Holdings Bhd has proposed a merger with Mercury Securities to expand into the full-fledged corporate advisory business.

Apex said in a filing with the stock exchange that it had entered into a heads of agreement (HoA) for the transfer of Mercury’s stockbroking, corporate advisory and other related businesses together with the requisite business assets and business liabilities, to Apex for RM140 million.

Apex will pay for the sum through a combination of RM48 million cash and 100 million new Apex shares at an issue price of 92 sen per share, a 0.97% premium to its fiveday volume weighted average price of 91.12 sen.

Upon completion, Mercury will hold about 31% of Apex.

Apex will finance part of the cash portion via a private placement of 20 million Apex shares at an issue price to be determined later. The exclusivity period for the HoA is three months.

“A detailed announcement will be made upon execution of the agreement for the proposed merger.”

Apex said the proposed merger will enable the group to leverage on the expertise and experience of the management team and employees in the stockbroking and corporate advisory business of Mercury.

Mercury, which has been in operation for 26 years, is one of the three non-bank backed players licensed by the Securities Commission Malaysia that can undertake full-fledged corporate advisory services which include initial public offerings, mergers and acquisitions, takeovers and privatisations, equity fund raising, underwriting and placement of securities.

On Bursa Malaysia last Friday, Apex closed unchanged at 90 sen on 25,000 shares done.