KUALA LUMPUR (Jan 17): Datuk Seow Gim Shen, Metaco Assets Holdings Sdn Bhd and Bemas Holdings Sdn Bhd have emerged as the new substantial shareholders of Rexit Bhd after acquiring an aggregate of 92.27 million shares or a 53.27% stake in the group for a total cash consideration of RM78.43 million via direct business transactions.

In a statement issued by UOB Kay Hian Securities (M) Sdn Bhd on behalf of Rexit on Wednesday, the joint parties acquired the block of shares at 85 sen per share from three existing shareholders of the group — Rexit Ventures Sdn Bhd (41.2%), Global Hartabumi Sdn Bhd (11.94%) and the company's current chief executive Datuk Chung Hon Cheong (0.13%).

Seow acquired 40.41 million Rexit shares or a 23.33% stake in the group, Metaco acquired 31.18 million shares or an 18% stake, while Bemas acquired the remaining 20.69 million shares or a 11.94% stake in the group.

According to the general insurance services provider, Seow serves as the chairman of Titan Pharmaceuticals Inc, a publicly traded company on the Nasdaq stock exchange.

Meanwhile, Metaco is an investment holding company with its directors and substantial shareholders being Kong Chien Hoi, Leow Kian Yong and Chan Chau Loong.

Bemas is also an investment holding company with its directors and substantial shareholders being Chung Ching Chi, Chong Yoke Siang, Chong Siew Yoong and Chung Yoke Seng.

The joint parties have agreed to maintain the listing status of Rexit.

Rexit, which made its debut in 2005, focuses on delivering solutions and services to the financial services sector, particularly the general insurance industry.

The group offers several web-based insurance solutions that cater for front-end marketing and sales functions, as well as back-end operations and management requirements of insurance companies.

Between the financial year ended June 30, 2020 (FY2020) and FY2023, Rexit’s profit climbed steadily from about RM9.52 million to about RM11.1 million, generated from annual revenues of between RM25.06 million and RM26.74 million. Its net margins were in the range of 36% to 42%.

Meanwhile, in a separate local bourse announcement, trading in Rexit was halted with effect from 4.17pm Wednesday and will resume trading 9am Thursday.

Shares in Rexit closed unchanged at 92 sen per share, valuing the company at RM174.19 million.