K&N Kenanga plans merger, listing transfer as part of revamp

PETALING JAYA: K&N Kenanga Holdings Bhd (KNKH) is planning an internal reorganisation that will see it transfer its listing status to whollyowned subsidiary Kenanga Investment Bank Bhd (Kenanga IB) after a merger and capital restructuring exercise.

In a filing with Bursa Malaysia last Friday, the company said the proposed merger would entail a transfer of the assets and liabilities of KNKH to Kenanga IB, for a disposal consideration that would be determined later.

“The total disposal consideration, which will be satisfied via cash payment from Kenanga IB to KNKH, has not been determined at this juncture, pending the determination of the identified assets and liabilities to be transferred,” it said.

KNKH also proposed a capital reduction and repayment by the company through the cancellation of all its ordinary shares of RM1 each and distribution of its entire shareholdings in Kenanga IB to the shareholders of the company. It said the proposed capital reduction and repayment would facilitate the distribution of KNKH’s entire shareholdings in Kenanga IB to the entitled shareholders.

“In addition, it will enable the shareholders of KNKH to have a direct participation in the future undertakings of the Kenanga IB Group upon completion of the proposed internal reorganization,” it added.

Upon the completion of the transfer and capital reduction, KNKH proposes to transfer its listing status on the Main Market of Bursa Malaysia to Kenanga IB.

KNKH said the proposed transfer would streamline the company’s businesses under Kenanga IB, via the elimination of duplicate functions performed by the KNKH group, resulting in time and cost efficiencies. The cash consideration for the proposed transfer will be funded via internal generated funds of Kenanga IB and will be used to settle the expenses of the reorganisation.

The proposed reorganisation is expected to be implemented and completed by the third quarter of 2016.