Kenanga Investment Bank Berhad (“Kenanga Investment Bank) announced that its asset management subsidiary, Kenanga Investors Berhad (“KIB”) has entered into a conditional Share Purchase Agreement with ECM Libra Financial Group Berhad to acquire the entire issued share capital, comprising 6,500,000 ordinary shares, of its fund management arm, Libra Invest Berhad (“Libra Invest”).
Under terms of the purchase agreement, KIB will acquire 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 RM35.0 million.
“We are excited about the prospects of this transaction which affirms our ambition and commitment for growth, and intention to broaden our footprint in the area of asset and wealth management,” said Datuk Chay Wai Leong, Group Managing Director of Kenanga Investment Bank Berhad.
“This highly complementary strategic acquisition is expected to propel KIB’s Asset under Management (“AUM”) over the RM10.0 billion mark, enhancing its position as one of Malaysia’s leading unit trust and asset management companies. We are looking forward to a seamless merger process, and subject to regulatory approvals, we aim to conclude this exercise by the third quarter of 2019,” he added.
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 and well-recognised equity product line up, representing a substantial expansion of its investment offerings and expertise.
“Libra Invest is renowned for its exceptional fixed income track record. Both our organisations share the same commitment towards investment excellence and client service, which will serve as a strong foundation for a smooth integration. With the combined high performing investment teams and leading edge products, clients and our business partners will have access to a broader selection of solutions, while enjoying enhanced overall customer experience,” said Ismitz Matthew De Alwis, Executive Director and Chief Executive Officer, KIB.
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. “The synergies from the combined entity will be a driving force to accelerate growth and strengthen our business over the long term.”
The asset management subsidiary of Kenanga Group, 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.