KENANGA Investors Bhd (KIB), the asset management arm of Kenanga Investment Bank Bhd, has completed its business consolidation exercise with its wholly-owned subsidiary, Libra Invest Bhd (LIB).
KIB obtained the High Court of Malaya’s approval effective Nov 29, to transfer identified assets, liabilities and undertakings of LIB to effect the aforesaid transfer.
Consequently, KIB will assume the role of investment manager for the funds that will be placed under its suite of fund offerings. Twelve retail and four wholesale funds of LIB were vested over to KIB at the end of Nov 29 business day.
Back in July, KIB completed the acquisition of 100% equity stake in LIB in accordance with the conditional share purchase agreement it had entered with LIB’s then holding company, ECM Libra Financial Group Bhd.
“We have successfully concluded the harmonisation exercise which has seen a smooth transition in terms of critical aspects such as customer service, back-end operations and system migrations as of today,” KIB CEO and executive director Ismitz Matthew De Alwis said in a statement on Nov 29.
To date, the company’s total assets under management (AUM) stood at about RM13.2 bil, including the AUM of its other wholly-owned subsidiary, Kenanga Islamic Investors Bhd (KIIB).
“This has been one of the more significant mergers and acquisition exercises in a long time within an industry which has been displaying signs of a slowdown amid an increasingly challenging macroeconomic environment,” he said.
De Alwis added that the company is confident that with the consolidation, KIB will be able to harness and convert these newly-acquired resources and capabilities into an expanded suite of product offerings, new business lines, cost efficiencies and enhanced distribution strength following the exercise.