Malaysia OKs K&N Kenanga’s acquisition of ECM Libra’s units
KUALA LUMPUR, June 8 — Malaysia’s government has given the green light for financial services group K&N Kenanga Holdings to acquire rival ECM Libra Financial Group’s investment banking and stock broking businesses, both companies said late yesterday.
The move comes roughly eight months after the central bank allowed both firms to commence merger talks and signals that consolidation in the financial services sector is heating up in this Southeast Asian country.
Separately, the Edge Financial Daily cited sources as saying today that K&N Kenanga could acquire ECM Libra’s business units in a RM890 million deal.
“Kenanga is expected to pay at least RM500 million cash, issue about 120 million K&N Kenanga shares and RM90 million worth of loan stocks,” the daily reported.
The deal follows the recent tie-up between RHB Capital and OSK Holdings’ investment bank, which saw the merged entity become the biggest brokerage service provider by market share in Malaysia.
The Edge said buying ECM Libra’s investment and stock broking business would make K&N Kenanga one of the three largest stock broking companies in Malaysia with a market share of almost 10 per cent. — Reuters