K & N Kenanga Holdings Berhad (“KNKH”) announced today that it has received approval from its shareholders to begin its corporate exercise that will transfer its listing status and initiate a merger with Kenanga Investment Bank Berhad (“KIBB”).

The Exercise, which is expected to be completed by the end of this year, will see the transfer of KNKH’s identified assets and liabilities to KIBB, as well as the transfer of KNKH’s Listing Status on the Main Market of Bursa Malaysia Securities Berhad to KIBB.

The new Kenanga Group structure will be leaner resulting in more simplified and efficient organisation. Greater cost saving and tax efficiency are also expected as a result of the restructuring.

According to Datuk Chay Wai Leong, Group Managing Director of KNKH, “With our commitment to deliver long-term shareholder value and sustainable growth, this restructuring will enable Kenanga Investment Bank Berhad to manage the Group’s resources more efficiently and spearhead its future growth.”

Today KIBB is the largest independent investment bank* by equity trading volume and value, as well as is one of the top three brokerage houses with the largest network of remisiers in the country. In the last 18 months, KIBB has announced key collaborations with leading international institutions through business cooperation agreements respectively with Tokai Tokyo Financial Holdings, Inc (one of Japan’s leading investment banking groups) and Yue Xiu Securities Holdings Limited (an entity which is part of the wider Yue Xiu Group, one of the largest state-owned enterprise groups in Guangzhou, China). More recently KIBB has also entered into a joint venture agreement with Tokyo-based Rakuten Securities, Inc.