The Sun (Malaysia)

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.

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