PETALING JAYA: Kenanga Investment Bank Bhd (Kenanga IB) has received Bank Negara Malaysia’s approval for its asset management subsidiary Kenanga Investors Bhd (KIB) to acquire ECM Libra Financial Group Bhd’s fund management arm Libra Invest Bhd.
Kenanga IB said today that the approval is subject to KIB obtaining the necessary approval from the Securities Commission Malaysia.
Under the terms of the conditional share purchase agreement entered in March this year, KIB will acquire 100% equity stake in Libra Invest for a provisional purchase consideration of RM50.1 million.
The final purchase consideration will be based on the net asset value of Libra Invest on the last day of the month preceding completion date and a premium of RM35 million.
“We are very pleased with this milestone. This complementary strategic acquisition is expected to propel KIB’s asset under management over the RM10 billion mark, enhancing its position as one of Malaysia’s leading unit trust and asset management firms,” said Kenanga IB group managing director Datuk Chay Wai Leong.
“Both our organisations share an aligned commitment towards investment excellence and client service, which will serve as a strong foundation for a seamless integration. We aim for the exercise to conclude by third quarter of this year,” said KIB executive director and CEO Ismitz Matthew De Alwis.
“Through this, we will boost product line-up, diversify asset base and enhance overall investment capabilities, with the intent of driving better investment outcome for our fast growing and discerning client base,” he added.
Established in 1995, Libra Invest has a stronghold in the fixed income space, which will complement KIB’s equity product line up, representing a substantial expansion of its investment offerings and expertise.
KIB provides investment solutions ranging from collective investment schemes, portfolio management services, exchange traded funds, financial planning and alternative investments for retail, high net worth clients, corporate and institutional clients.