Kenanga Investors to acquire Libra Invest
KUCHING: Kenanga Investment Bank Bhd ( Kenanga Investment Bank) yesterday announced that its asset management subsidiary, Kenanga Investors Bhd ( Kenanga Investors) has entered into a conditional Share Purchase Agreement with ECM Libra Financial Group Bhd to acquire the entire issued share capital, comprising 6,500,000 ordinary shares, of its fund management arm, Libra Invest Bhd ( Libra Invest).
Under terms of the purchase agreement, Kenanga Investors wi l l 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 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,” says Datuk Chay Wai Leong, group managing director of Kenanga Investment Bank.
“This highly complementary strategic acquisition is expected to propel Kenanga Investors’ Asset under Management (AUM) over the RM10 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 Kenanga Investors’ successful and wellrecognised 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 of Kenanga Investors.
Both Kenanga Investors 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 f ixed 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,” he added.