Kenanga to pay RM875m for ECM units
KUALA LUMPUR, June 15 — Standalone investment bank K&N Kenanga Holdings Bhd announced today it is buying rival ECM Libra Financial Group Bhd’s investment banking and stock broking businesses for RM875.1 million.
Kenanga will finance the deal by issuing 120 million of its shares at RM1 each and 95.5 million loan stocks along with RM659.6 million in cash, its group managing director, Chay Wai Leong, told reporters at a news conference.
The deal values ECM Libra’s investment banking arm at 1.27 times book value.
The two companies said on June 7 they had obtained Malaysian government approval for the deal. — Reuters