Kenanga Investment Bank Berhad has received approval from Bank Negara Malaysia for its asset management subsidiary, Kenanga Investors Berhad (“KIB”) to acquire 100% equity stake in Libra Invest Berhad (“Libra Invest”), a fund management arm of ECM Libra Financial Group Berhad. The green light 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 Libra Invest for a provisional purchase consideration of RM50.1 mil. 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 RM35.0 mil.
According to Datuk Chay Wai Leong, Group Managing Director of Kenanga Investment Bank Berhad, “We are very pleased with this milestone. This complementary strategic acquisition is expected to propel KIB’s Asset under Management over the RM10.0 bil mark, enhancing its position as one of Malaysia’s leading unit trust and asset management companies.”
Established in 1995, Libra Invest is an award-winning Asset Management Company with a stronghold in the fixed income space. Its experience in this area will complement KIB’s successful equity product line-up, representing a substantial expansion of its investment offerings and expertise.
“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.
“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,” said Ismitz Matthew De Alwis, Executive Director and Chief Executive Officer, Kenanga Investors Berhad.
Both KIB and Libra Invest are regular and repeat recipients of distinguished industry accolades, such as the Lipper, Fundsupermart and Morningstar awards, which recognise the outstanding achievements of their equity and fixed income funds respectively.
KIB provides investment solutions ranging from collective investment schemes, portfolio management services, ETFs, financial planning and alternative investments for retail, high net worth clients, corporate and institutional clients.
For more information on Kenanga Group, please visit www.kenanga.com.my.