CEO Morning Brief

Two Major Shareholders of Rexit Jailed in Singapore for Illegally Obtaining Data From Suspect in Cybercrime Ring

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Publish date: Fri, 25 Oct 2024, 10:39 AM
TheEdge CEO Morning Brief

SINGAPORE (Oct 24): Two major shareholders of Rexit Bhd (KL:REXIT) were sentenced to jail in a Singaporean court for participating in a conspiracy to illegally obtain data of over 9,000 people.

According to a report by The Straits Times, Datuk Seow Gim Shen and Kong Chien Hoi had pleaded guilty to one charge each of conspiring with Chinese national Sun Jiao to have the personal information of 9,369 unknown individuals supplied to them for gambling operations.

The Singaporean publication reported that Sun was allegedly linked to a global syndicate that conducted malicious cyber activities.

Both Seow and Kong were each sentenced to 14 weeks’ jail on Thursday, reported The Straits Times.

Seow is the largest shareholder of ACE Market-listed Rexit with a 23.33% stake, while Kong is a substantial shareholder via investment holding company Metaco Asset Holdings Sdn Bhd’s 18% stake in Rexit.

Kong owns a 42.5% stake in Metaco, according to a filing with Companies Commission of Malaysia.

Seow resigned as Rexit's executive chairman on Oct 11 after just six weeks in the post citing “personal commitments and the growth of his other new business ventures”.

Seow, Metaco and Bemas Holdings Sdn Bhd emerged as new substantial shareholders of Rexit with an aggregate 92.27 million shares or 53.27% stake back in January this year, and offered a mandatory takeover offer for the remaining shares at 85 sen per share. They maintained the listing status of the company on the ACE Market.

At the offer’s close in February, only 7,734 shares or 0.01% were received by the joint offerors.

Rexit’s share price fell one sen to 75 sen on Thursday, valuing the company at RM142 million.

Source: TheEdge - 25 Oct 2024

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